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.

S 4028 limits New Jersey state agencies to withholding no more than two percent of the amount due on each partial payment from contractors on state construction projects, provided the contractor has a performance bond. This rule applies to projects where the state agency owns the property being improved and affects contractors working on state-owned construction projects. If a contractor had a contract terminated for cause within the past five years, the state agency may withhold more than two percent. The bill does not change existing payment deadlines but restricts excessive withholdings on partial payments.