New Jersey Assembly Bill A4718

New Jersey 2022-2023 Regular Session

• Introduced: 10/11/22
• Refer: 10/11/22

Caption

Provides equitable relief to State contractors who sustained unanticipated expenses due to price escalation for construction materials.

Impact

If enacted, A4718 allows for contract amendments based on verified claims of material cost escalations that exceed five percent. The adjustments are contingent upon the approval of the Director of the relevant division in the Department of the Treasury. Contracts affected need to be those for materials purchased or invoiced after March 1, 2020. This proactive measure aims to ensure continued public works projects can be fulfilled without financial strain leading to project abandonment.

Summary

Assembly Bill A4718 aims to provide equitable relief to state contractors who have faced unexpected increases in the costs of construction materials. It addresses significant disparities faced by contractors awarded contracts during a period when the prices of essential materials surged due to unforeseen circumstances. By permitting adjustments to the contract terms based on verified increases in material costs, the bill seeks to protect the interests of both the contractors who have been affected and the public that relies on efficient public works execution.

Contention

The bill specifically contains stipulations that no adjustments shall exceed total project appropriations, which is designed to prevent any excess financial burden on state resources. However, there may be concerns regarding the state's ability to sustain these adjustments without jeopardizing budgetary constraints in other areas. Critics may argue that while the bill proposes necessary relief, its implementation could create challenges ensuring consistent oversight and equitable treatment across various contracts.