Gov. Christie Signs Senate Bill No. 123 aimed to help New Jersey small businesses bid on public construction projects
Gov. Chris Christie recently signed a new law aimed to help New Jersey small businesses bid on public construction projects. Senate Bill No. 123 establishes “Small Business Bonding Readiness Assistance Program” to help small businesses meet state or federal contract surety bond requirements.According to Gov. Chris Christie, the new law will provide critical assistance to small business owners, who represent 98.3 percent of employers in this state. In many cases, these smaller contractors lack the resources to secure construction surety bonds, which are a mandatory prerequisite to bidding on public projects.
“S-123 is another avenue for small, minority-owned and women-owned businesses to have greater access to job-creating commercial opportunities,” Governor Christie said in a press statement. “It is a win for taxpayers and residents across New Jersey also because increased competition for public contracts will lead to lower costs and a more diverse pool of small businesses performing public services.”
Key Provisions of s-123
The new program, which aims to level the playing field between small and large contractors, will be operated by the Economic Development Authority (EDA). Below are the two key provisions of S-123:
Small Business Bonding Readiness Assistance Program
The “Small Business Bonding Readiness Assistance Program” will provide support services to small businesses and assist them in securing surety bonding so that small businesses may bid on public works projects or perform contracts offered by the state or by the federal government. To accomplish this, the EDA will enter an agreement with a non-profit business advocacy association.
The support services and assistance provided by the association will be designed to increase small businesses’ bonding knowledge and capacity in order for small businesses to qualify for surety bonding. The support services and assistance to small businesses will specifically focus on improving small businesses’ financial presentation, operational efficiency, profitability, and surety bonding capacity and knowledge through a series of workshops and strategic consulting sessions.
Small Business Bonding Readiness Assistance Fund
The new law also establishes a special revolving fund known as the “Small Business Bonding Readiness Assistance Fund.” The fund is intended to provide grant funding to small businesses that participate in the program, grant funding to an association that provides small businesses participating in the program with support services and assistance, and to administer the program.
Under S-123, the fund may be credited with monies made available by the EDA for the purpose of the fund. The authority is authorized to seek and accept gifts, grants, or donations from private or public sources for deposit in the fund which are not inconsistent with other laws.
The authority will be establishing terms and conditions by which small businesses may apply for the program, as well as procedures for the implementation of, and requirements for, the program and the administration of the fund.
Are you a New Jersey small business owner? Do you have any questions regarding S-123? Would you like to discuss the matter further? If so, please contact me, David Blank, at 201-806-3364.
BESS Project Agreements: Allocating Risk Among Developers, EPC Contractors, and Equipment Suppliers
Developers, engineering, procurement, and construction (EPC) contractors, and equipment suppliers each play a critical role in completing a BESS project. However, when equipment costs rise, deliveries are delayed, or regulations change, determining who bears the financial consequences can become contentious. Well-drafted project agreements are essential to sound risk allocation. Key Takeaways This article is Part […]
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
