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NJ S4028

Bill

Status

Engrossed

6/30/2025

Primary Sponsor

Paul Sarlo

Click for details

Origin

Senate

2024-2025 Regular Session

AI Summary

  • State agencies acting as property owners on construction projects may withhold no more than two percent of each partial payment owed to contractors who provide a performance bond within 15 days of the award or conditional award

  • The two percent withholding cap does not apply to contractors who have had a contract terminated for cause within the five years prior to the current award, allowing State agencies discretion to withhold higher amounts in those cases

  • Amends P.L.1992, c.133 (the existing construction contract payment law) which governs payment timelines and remedies for contractors, subcontractors, and subsubcontractors on improvement projects

  • Takes effect immediately upon enactment

Legislative Description

Limits amount of payment that State agency as property owner may withhold from certain contractors on State construction contracts to two percent of amount due.

Labor

Last Action

Received in the Assembly, Referred to Assembly Labor Committee

7/24/2025

Committee Referrals

Labor7/24/2025
Labor1/14/2025

Full Bill Text

No bill text available