New Jersey Administrative Code
Title 17 - TREASURY - GENERAL
Chapter 49 - PUBLIC-PRIVATE PARTNERSHIPS RULES
Subchapter 8 - STATE GOVERNMENT ENTITY PROCEDURES AND REQUIREMENTS
Section 17:49-8.7 - Construction contract standards and account requirements
Universal Citation: NJ Admin Code 17:49-8.7
Current through Register Vol. 56, No. 18, September 16, 2024
(a) Any construction contract shall meet NJ Uniform Construction Code (UCC) requirements for all construction and applicable environmental permitting requirements and include the following minimum building maintenance standards and building maintenance benchmarks, including long-range maintenance plan requirements:
1. The performance of a Baseline Facility
Condition Assessment at the close of construction, including: identification of
the facility, facility size and dimensions, date of construction, type of
construction, intended functional use, number of floors, an evaluation of all
systems, equipment, and other components of a facility, organized by individual
component or item, and identification of the facility, facility size and
dimensions, date of construction, type of construction, intended functional
use, and number of floors;
2.
Current replacement value estimating the scope of items that may need to be
repaired, renovated, or replaced during any operating and maintenance lease
term, including, but not limited to, physical systems, basic building
components, and/or major appliances or equipment;
3. Financial assessment including an analysis
of reserve accounts, an estimate of cost of capital repairs annually, rate of
return on reserve accounts, and project interest;
4. Building system and component lifecycle
data analysis organized by specific building component, planned/estimated
useful life/lifecycle, unit cost, quantity relative to each component, and unit
cost per item, linear foot, square foot, or other unit of measure;
5. Capital Reserve Draw Schedule for
replacement expenditures, including timing of replacement of components, number
of building components being replaced, and planned disbursements from the
reserve account to cover such replacements;
6. Reserve fund account analysis and
availability including a summary of current reserve account balance, projected
account funding, rate of investment returns, planned capital expenditures and
withdrawals, and projected ending annual reserve account balance; and
7. Posting of a performance bond to ensure
the completion of the project and a payment bond guaranteeing prompt payment of
moneys in accordance with, and conforming to, the requirements of N.J.S.A.
2A:44-143et seq.
(b) Upon approval by the State Treasurer, but prior to commencing work on a project, the State government entity shall require a private entity to:
1. Establish a construction account and
appoint a third-party financial institution, which shall be pre-qualified by
the State Treasurer pursuant to N.J.A.C. 17:49-2, to act as a collateral agent
and manage the construction account.
i. The
construction account shall include the funding and financial instruments that
shall be used to fully capitalize and fund the project;
ii. The collateral agent shall maintain a
full accounting of the funds and instruments in the account;
iii. The funds and instruments in the
construction account shall be held in trust for the benefit of the contractor,
construction manager, and design-build team involved in the project;
iv. The funds and instruments in the
construction account shall not be the property of the private entity unless all
amounts due to the construction account beneficiaries are paid in full;
and
v. The construction account
shall not be designated for more than one project.
Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.