SENATE COMMUNITY AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 913

STATE OF NEW JERSEY

DATED: MARCH 20, 1997

      The Senate Community Affairs Committee reports Senate Bill No. 913 without recommendation.

      This bill would require every construction contract entered into pursuant to the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.) to provide that disputes arising under the contract must be settled by arbitration administered by the American Arbitration Association under its Construction Industry Arbitration Rules. Under current law the determination of whether to resolve disputes by arbitration is a matter of contract between the parties.