SFAA Addresses P3 Bills in New Jersey
Wednesday, January 21, 2015
New Jersey SB 2489 would authorize local governments to enter into P3 agreements for any public building, road, structure, infrastructure or facility that exceed $10 million. A P3 may be a lease agreement for a public building, road, structure, infrastructure or facility. The bill also extends this authority to school districts and State and county colleges. The Senate bill also includes a long-term maintenance plan, which was amended in the Senate to include a long-term maintenance bond. SB 2489 quickly passed the Senate in 2014, while AB 3859, the companion bill, has not moved since it was introduced.
Bonds are required under the bills, but the bills require that the chief financial officer of the public owner obtain the bonds from the private partner, rather than requiring the actual construction contractor to be bonded. SFAA has drafted an amendment to resolve this issue and is working with the AIA to amend the bill in the Assembly on the bonding issues.
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