N.J. Admin. Code § 16:72-2.3

Current through Register Vol. 56, No. 24, December 18, 2024

Section 16:72-2.3 - Performance and payment bonds

(a) In accordance with N.J.S.A. 2A:44-143, a performance bond not to exceed 100 percent of the contract price shall be required of the successful bidder when a contract for public buildings, or other public works or improvements is awarded to secure fulfillment of the contractor's obligations specified in the contract. The bond percentage required, based upon NJ TRANSIT's assessment of the risks presented to the State by the type of contract and other relevant factors, shall be identified in the bid documents prior to the contract bidding date. NJ TRANSIT may waive the bond requirement consistent with N.J.S.A. 2A:44-143. In determining whether to waive the bond requirement, NJ TRANSIT shall consider the following:

1. The nature and extent of the work to be performed;

2. The availability of potential bidders to perform the work; and

3. The financial and other capabilities of the potential bidders.

(b) A performance bond of less than 100 percent of the contract or some other form of security as set forth in the bid specifications prior to bid opening may be required, at NJ TRANSIT's sole discretion, of the successful bidder when a contract for other procurements is awarded to secure fulfillment of the contractor's obligation specified in the contract.

(c) In accordance with N.J.S.A. 2A:44-143, a payment bond not to exceed 100 percent of the contract price shall be required of the successful bidder when a contract for public buildings, or other public works or improvements is awarded to protect firms or persons supplying labor or materials to the contractor/subcontractor for the performance of work provided for in the contract. The bond percentage required, based upon NJ TRANSIT's assessment of the risks presented to NJ TRANSIT by the type of contract and other relevant factors, shall be identified in the bid documents prior to the contract bidding date. NJ TRANSIT may waive the bond requirement consistent with N.J.S.A. 2A:44-143. In determining whether to waive the bond requirement, NJ TRANSIT shall consider the following:

1. The nature and extent of the work to be performed;

2. The availability of potential bidders to perform the work; and

3. The financial and other capabilities of the potential bidders.

(d) A payment bond of less than 100 percent of the contract or some other form of security as set forth in the bid specifications prior to bid opening may be required, at NJ TRANSIT's sole discretion, of the successful bidder when a contract for other procurements is awarded to protect firms or persons supplying labor or materials to the contractor/subcontractor for the performance of work provided for in the contract.

(e) Performance and payment bonds must be executed by surety companies licensed to do business in the State of New Jersey and licensed by the New Jersey Department of Banking and Insurance, in compliance with the New Jersey Producer Licensing Act of 2001, P.L. 2001, c. 210, as amended, and authorized by the U.S. Department of the Treasury pursuant to Circular 570.

N.J. Admin. Code § 16:72-2.3

Amended by 51 N.J.R. 1209(b), effective 7/15/2019