ASSEMBLY, No. 1878

STATE OF NEW JERSEY

INTRODUCED MAY6, 1996

By Assemblyman O'TOOLE

An Act concerning masonry bids on multiple prime contracts and amending P.L.1971, c.198.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 16 of P.L.1971, c.198 (C.40A:11-16) is amended to read as follows:

    16. Separate plans for various types of work; bids; contracts. In the preparation of plans and specifications for the erection, alteration or repair of any public building by any contracting unit, when the entire cost of the work will exceed the amount set forth in, or the amount calculated by the Governor pursuant to, section 3 of P.L.1971, c. 198 (C.40A:11-3), the architect, engineer or other person preparing the plans and specifications may prepare separate plans and specifications for

    (1) The plumbing and gas fitting and all kindred work;

    (2) Steam power plants, steam and hot water heating and ventilating apparatus and all kindred work;

    (3) Electrical work;

    (4) Structural steel and ornamental iron work; [and]

    (5) Masonry work; and

    (6) All other work required for the completion of the project .

    The contracting unit or its contracting agent shall advertise for and receive, in the manner provided by law, either (a) separate bids for each of said branches of work, or (b) bids for all the work and materials required to complete the building to be included in a single overall contract, or (c) both. There will be set forth in the bid the name or names of all subcontractors to whom the bidder will subcontract the furnishing of plumbing and gas fitting, and all kindred work, and of the steam and hot water heating and ventilating apparatus, steam power plants and kindred work, and electrical work, structural steel and ornamental iron work, and masonry work, each of which subcontractors shall be qualified in accordance with this act. The contracting unit shall require evidence of performance security to be submitted simultaneously with the list of the subcontractors. Evidence of performance security may be supplied by the bidder on behalf of himself and any or all subcontractors, or by each respective subcontractor, or by any combination thereof which results in evidence of performance security equalling, but in no event exceeding, the total amount bid.

    Contracts shall be awarded to the lowest responsible bidder. In the event that a contract is advertised in accordance with (c) above said contract shall be awarded in the following manner: If the sum total of the amounts bid by the lowest responsible bidder for each branch is less than the amount bid by the lowest responsible bidder for all the work and materials, the contracting unit shall award separate contracts for each of such branches to the lowest responsible bidder therefor, but if the sum total of the amounts bid by the lowest responsible bidder for each branch is not less than the amount bid by the lowest responsible bidder for all the work and materials, the contracting unit shall award a single overall contract to the lowest responsible bidder for all of such work and materials. In every case in which a contract is awarded under (b) above, all payments required to be made under such contract for work and materials supplied by a subcontractor shall, upon the certification of the contractor of the amount due to the subcontractor, be paid directly to the subcontractor.

(cf: P.L.1987, c.48, s.1)

    2. This act shall take effect immediately.

STATEMENT

    This bill would permit masonry contractors to bid on local multiple prime construction projects as a prime contractor. The intent of the bill is to effect cost savings to local governments by eliminating the mark-up that would be paid to a general contractor if the masonry work was performed as a subcontract.