Limits amount of payment that State agency as property owner may withhold from certain contractors on State construction contracts to two percent of amount due.

This bill limits New Jersey State agencies to withholding no more than 2% of the amount due on each partial payment from contractors working on state construction projects. It requires contractors to provide a performance bond within 15 days of contract award to qualify for this 2% cap. However, if a contractor had a contract terminated for cause in the past five years, the State agency may withhold more than 2% at its discretion. The bill applies specifically to State-owned construction projects and aims to streamline payment processes for contractors.