State Survey of P3 Authorizing Statutes: New Jersey

N.J. Rev. Statutes § 18A:64-85

Summary

The law authorizes state and county colleges to use P3s for facilities for the on-campus construction, reconstruction, repair, alteration, improvement, extension, management, or operation of a building, structure, or facility.

Surety Bond Requirements:

The law requires the public owner’s chief financial officer to require the private entity to provide bonds.

Excerpt:

“d. (2) Where no public fund has been established for the financing of a public improvement, the chief financial officer of the public owner shall require the private entity for whom the public improvement is being made to post, or cause to be posted, a bond guaranteeing prompt payment of moneys due to the contractor, his or her subcontractors and to all persons furnishing labor or materials to the contractor or his or her subcontractors in the prosecution of the work on the public improvement.”

NJ Rev. Statutes § 18a:64-85

Summary

Expands upon current P3 law to allow local/county governments, municipalities, boards, commissions, or agencies to enter into a private contract for the development, construction, of any building, local or county road, vertical structure, or facility constructed or acquired by a local government unit to operate local government functions, including any infrastructure or facility used or to be used by the public or in support of a public purpose or activity. A qualifying project shall include an expenditure of at least $10 million in public funds, or any expenditure in solely private funds. Also amends the current P3 law by citing NJ’s LMA Act, § 2A:44-143.

Excerpt:

§ 18a:64-85(43)(f)(3) The general contractor, construction manager, or design-build team shall be required to post, a performance bond to ensure completion of the project and a payment bond guaranteeing prompt payment of money due in accordance with and conforming to the requirements of N.J. §.2A:44-143 et seq.