Sponsored by:
Senator JOSEPH P. CRYAN
District 20 (Union)
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
Co-Sponsored by:
Senators Cruz-Perez and Madden
SYNOPSIS
Increases contracting agencies goals for set-aside contracts for disabled veterans’ businesses from three percent to six percent; requires liquidated damages provisions.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning set-aside contracts for disabled veterans’ businesses and amending and supplementing P.L.2015, c.116.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 5 of P.L.2015, c.116 (C.52:32-31.5) is amended to read as follows:
5. a. There are established the goals that contracting agencies award at least [3%] six percent of their contracts to disabled veterans' businesses. These goals may, when appropriate, be attained by the direct designation of prime contracts for these business or, in the case of a prime contract not directly so designated, by requiring that a portion of such a prime contract be subcontracted to a disabled veterans' business. Each contracting agency shall make a good faith effort to attain the goals established in this subsection.
b. For purposes of attaining this goal, contracting agencies shall, when necessary, specifically set aside contracts or portions of contracts for which only these businesses may bid.
(cf: P.L.2015, c.116, s.5)
2. (New section) Any contract entered into pursuant to P.L.2015, c.116 (C.52:32-31.1 et seq.) may include liquidated damages for the violation of any of the terms and conditions thereof or the failure to perform the contract in accordance with its terms and conditions, or the terms and conditions of P.L.2015, c.116 (C.52:32-31.1 et seq.). Notwithstanding any other provision of law to the contrary, it shall be void, unenforceable, and against public policy for a provision in a contract entered into under P.L.2015, c.116 (C.52:32-31.1 et seq.) to limit a contractor's remedy for the contracting unit's negligence, bad faith, active interference, tortious conduct, or other reasons uncontemplated by the parties that delay the contractor's performance, to giving the contractor an extension of time for performance under the contract. For the purposes of this section, "contractor" means a person, assignees, or legal representatives with whom a contract with a contracting unit is made.
3. This act shall take effect immediately.
STATEMENT
This bill increases State contracting agencies goals for set-aside contracts for disabled veterans’ business from three percent to six percent and permits liquidated damages provisions for such set-asides. Liquidated damages are monetary compensation for a breach of contract.
This bill also provides that it would be void, unenforceable, and against public policy for a provision in a contract entered into to limit a contractor's remedy for the contracting unit's negligence, bad faith, active interference, tortious conduct, or other reasons uncontemplated by the parties that delay the contractor's performance, to giving the contractor an extension of time for performance under the contract.