N.J. Admin. Code § 6A:23A-21.2
Current through Register Vol. 56, No. 9, May 6, 2024
Section 6A:23A-21.2 - Acceptance of bonds under the Public School Contracts Law(a) A district board of education or charter school board of trustees may require the following bonds, as authorized by 18A:18A-23 to 25: 3. A labor and material bond.(b) A district board of education or charter school board of trustees may require in the notice to bidders or in the specifications that bidders guarantee they will enter into a contract with the district board of education or charter school board of trustees and will furnish any prescribed performance bond or other security required as a guarantee or indemnification. The guarantee may be given, at the option of the bidder, by certified check, cashier's check, or bid bond. When the guarantee is given in the form of a bid bond, the district board of education or charter school board of trustees shall ensure that such bid bond: 1. Be given by a responsible surety or insurance company licensed to operate in New Jersey. A district board of education or charter school board of trustees is prohibited from requiring that bidders submit a bid bond from a particular surety or insurance company; or2. Be given by a responsible individual residing in New Jersey. The district board of education or charter school board of trustees may reject such individual bid bond if not satisfied with the sufficiency of the individual surety offered.(c) The district board of education or charter school board of trustees shall ensure that the bond is in the form of a certificate, identifying the bidder whose acts are guaranteed, the name of the surety company, insurance company or individual surety, and the district board of education or charter school board of trustees in whose favor the bonds are given.(d) The district board of education or charter school board of trustees shall ensure that the "penalty" or "penal sum" on performance bonds, labor and material bonds, and all other such bonds is expressed in words and figures as a specific number of dollars and not as a percentage of the bid.(e) The district board of education or charter school board of trustees shall ensure that the "penalty" or "penal sum" on performance and labor and material bonds is in the amount of 100 percent of the contract price.N.J. Admin. Code § 6A:23A-21.2
Amended by 49 N.J.R. 1079(a), effective 5/1/2017