N.J. Admin. Code § 16:44-9.1

Current through Register Vol. 56, No. 9, May 6, 2024

Section 16:44-9.1 - Contracts

(a) The Department will forward the contract and surety corporation payment and performance bond forms to the contractor for signature and include the time within which the executed contract and bond forms must be returned in accordance with the specifications. The contract must be signed and witnessed. A properly signed and sealed corporate resolution verifying the authority of the persons to sign the contract for the corporation must be included with the contract. The corporate resolution must specify that each person individually has the authority to bind the contractor to the contract.

(b) Each payment and performance bond must be in an amount at least equal to the total contract price less the lump sum price bid for the pay item "Performance Bond and Payment Bond." Payment and performance bonds must bear the date of issuance, which must be subsequent to the project award. The payment and performance bond number must be legibly shown on the top right corner of the bond.

1. Payment and performance bonds must comply with the requirements of this chapter and relevant State statutes. Bonds covering Department projects must be issued by companies listed in the current United States Treasury Department Circular 570, which Circular will establish the underwriting limitation for any one risk.

2. Bonds shall be issued only by companies authorized to transact business in the State of New Jersey.

3. If the penal sum of the bond is $ 3.5 million or greater and the surety company has been operational for a period in excess of five years, the surety company issuing the bond shall be rated in one of the three highest categories by an independent, nationally recognized United States rating company as set forth in N.J.A.C. 11:1-41. The contractor shall submit proof of the surety company's current rating with the bonds.

4. The contractor shall submit a surety disclosure statement and certification which complies with the requirements of 2A:44-143 with the bonds.

5. Two or more surety companies may underwrite the payment and performance bonds on a project if the aggregate of their underwriting limitations, as established by United States Treasury Department Circular 570, is not exceeded by the penal sum of the bonds. Each company may limit its liability, upon the face of the bond or power of attorney form, to a definite specified amount within its underwriting limitation. The principal and sureties must execute the obligations jointly and severally.

(c) For Federally funded projects, successful bidders must provide proof of the contractor's valid State of New Jersey Business Registration issued pursuant to 52:32-44 by the Department of the Treasury, Division of Revenue, prior to execution of the contract.

(d) If the contractor fails to return the executed contract, bonds and other required documents as set forth in the specifications within the time specified by the Department, the Department will take whatever action is appropriate and authorized by law and specification.

(e) After execution by the Commissioner, a copy of the signed contract will be transmitted to the contractor.

(f) For Federally funded projects, successful bidders must provide proof of the contractor's current registration with the Department of Labor and Workforce Development, Division of Wage and Hour Compliance, pursuant to the Public Works Contractor Registration Act, 34:11-56.4 8 et seq., prior to execution of the contract.

(g) For 100 percent State-funded projects, the contractor must be in compliance with 19:44A-20.1 3 and Executive Order No. 117 (2008), concerning disclosure of political contributions, prior to the contract being executed by the Commissioner.

(h) The contractor will have the opportunity to escrow bid documents pursuant to, and in accordance with, the project's specifications.

(i) A non-resident contractor must complete an "Appointment of Agent" form, which will be provided by the Department.

N.J. Admin. Code § 16:44-9.1

Repeal and New Rule, R.1994 d.198, effective 4/18/1994.
See: 25 N.J.R. 4727(a), 26 N.J.R. 1690(b).
Section was "Requirements".
Amended by R.1999 d.113, effective 4/5/1999.
See: 31 N.J.R. 29(a), 31 N.J.R. 890(a).
In (b), inserted new 3 and 4, recodified former 3 and 4 as 5 and 6.
Amended by R.2004 d.342, effective 9/7/2004.
See: 36 N.J.R. 1659(a), 36 N.J.R. 4155(b).
Rewrote the section.
Recodified from N.J.A.C. 16:44-6.1 and amended by R.2010 d.122, effective 6/21/2010.
See: 41 N.J.R. 3387(a), 42 N.J.R. 1239(a).
Rewrote (a), (c) and (f); in the introductory paragraph of (b), inserted the last two sentences; deleted (b)6; in (e), deleted "of Transportation" following "Commissioner", and substituted "transmitted" for "sent"; and added (g), (h) and (i). Former N.J.A.C. 16:44-9.1, Purpose, recodified to N.J.A.C. 16:44-12.1.