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 each partial payment due to contractors on state construction projects. It applies when contractors provide a performance bond within 15 days of contract award. State agencies may withhold more than 2% if the contractor had a contract terminated for cause within the past five years. The bill does not affect payment timelines, interest rates, or dispute resolution rules covered in other sections.