Sponsored by:
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
SYNOPSIS
Requires entities performing certain construction services on public contracts to carry errors and omissions insurance.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning errors and omissions insurance on public contracts and supplementing chapter 32 of Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. A construction services contract or agreement, the cost or contract price whereof is to be paid with or out of public funds or out of college funds, as applicable, awarded in accordance with the “Local Public Contracts Law,” P.L.1971, c.198 (C.40A:11-1 et seq.), the “Public School Contracts Law,” N.J.S.18A:18A-1 et seq., the “State College Contracts Law,” P.L.1986, c.43 (18A:64-52 et seq.), R.S.52:32-2, or P.L.1954, c.48 (C.52:34-6 et seq.) shall require errors and omissions insurance. A copy of the insurance policy shall be provided to the government entity or entities included in the construction services contract or agreement. The contract or agreement shall be subject to the provisions of P.L.1963, c.73 (C.47:1A-1 et seq.) and all of its exemptions, commonly known as the open public records act, and the declarations page, or its substantial equivalent, shall be made available to the public on the official website of the Department of the Treasury, Department of Community Affairs, or Department of Education, as appropriate, and the official website of the municipality the construction is to take place.
As used in this section, “construction services” means civil design, mechanical engineering, electrical engineering, plumbing design, and structural engineering
2. This act shall take effect immediately.
STATEMENT
This bill requires parties in agreement or contracted on public contracts for construction services to carry errors and omissions insurance. No entity would be awarded a contract without sufficient proof of errors and omissions insurance. A copy of the insurance would be provided to the government entity or entities included in the contract or agreement. Errors and omissions insurance is a specialized type of liability protection that is not covered by traditional liability insurance. Errors and omissions coverage is designed to insure members of a particular professional group from the liability arising out of a special risk such as negligence, omissions, mistakes, and errors inherent in the practice of the profession. The construction services outlined in this bill include civil design, mechanical engineering, electrical engineering, plumbing design, and structural engineering. The declarations page will be made available to the public on the official website of the Department of the Treasury, Department of Community Affairs, or Department of Education, as appropriate, and the official website of the municipality the construction is to take place.