NY Canal L § 30 (2021)
2021 New York Laws CAL - Canal Article 4 - Canal Contracts 30 - Contracts for Improvement, Maintenance or Repair of the Canal System.

§  30.  Contracts  for improvement, maintenance or repair of the canal system. Upon  the  completion  and  final  approval  of  the  plans  and specifications  for  the improvement, maintenance or repair to the canal system, contracts therefor shall be executed as provided herein.   1. Advertising for proposals.  The  corporation  shall  advertise  for proposals in accordance with plans and specifications prepared by it for such  improvement,  maintenance  or  repair  of  the canal system as the corporation deems it  expedient  to  have  performed  by  contract.  The advertisement  shall  be  limited  to  a  brief  description of the work proposed to be done, with an announcement stating where the maps,  plans and specifications may be seen, the terms and conditions under which the proposals  will  be  received, the time and place where the same will be opened, the amount of the draft or  certified  check  to  accompany  the proposal,  and  such other matters as the corporation may deem advisable to include therein. Such advertisement shall be published at least  once in  each  week  for two successive weeks in a newspaper published at the county seat of the county in which such canal work is  to  be  performed and  in  such  other  newspapers as the corporation may designate. If no newspaper is published at such county seat, then the publication of  the advertisement shall be in such newspaper or newspapers within the county as  the  corporation  may  select.  If  no newspaper is published in the county, the publication of the advertisement shall be in such  newspaper or  newspapers  in  an  adjoining  county  as  may  be  selected  by the corporation. Failure of such newspaper,  published  in  such  county  or adjoining  county,  to  publish  such  advertisement as provided in this subdivision or as directed by the corporation shall not  invalidate  the publication  of  advertisement for proposals provided such advertisement is published in another newspaper or trade publication,  which  will  be most  likely  to  give  adequate  notice  to  contractors  of  the  work contemplated and of the invitation  to  submit  proposals  therefor,  at least  once in each week for any two successive weeks preceding the date on which proposals described in such advertisement are  to  be  received and opened.   2.  Proposals.  Each  proposal shall specify the correct gross sum for which the work will be performed and shall also include the amount to be charged for each item specified on  the  proposal  estimate  sheet.  The corporation  may  prescribe and furnish forms for the submission of such proposals and may prescribe the manner  of  submitting  the  same  which shall  not  be  inconsistent  herewith. Accompanying each proposal there shall be a certified check or bank cashier's check for the amount of the bid deposit, to be  fixed  by  the  corporation  and  specified  in  the advertisement  for proposals. The checks of the two low bidders shall be deposited by the corporation in a special  account.  Provided,  however, that  if  prior  to  or upon receipt of said checks by the corporation a bidder who is one of the two low bidders shall have duly filed a bond as hereinafter provided, the corporation shall  forthwith  return  to  said bidder  his  aforesaid  check  without depositing the same. If alternate proposals are taken, the checks of the two low bidders of all  alternate proposals shall be deposited. All checks other than those of the two low bidders  shall  be returned promptly by the corporation. Notwithstanding the provisions of any general or special law, the money  represented  by the checks of the two low bidders shall be paid from the special account when  the  contractor has duly executed and delivered to the corporation the contract and the bond or bonds required by law for  the  performance of  the  work of a public improvement for the state of New York, or upon the rejection of all bids. The low bidder,  in  the  discretion  of  the corporation, and the second low bidder, as a matter of right, may at any time  after  the  opening  of  the  respective  proposals, file with the  corporation a bond, the principal amount of which shall at  least  equal the  amount of the respective bidder's check, theretofore deposited with his proposal, in the form prescribed by the corporation, with sufficient sureties,  to  be approved by the corporation, conditioned that the said bidder will execute a contract and furnish  such  performance  or  other bonds  as  may  be  required  by law in accordance with the terms of the bidder's  said  proposal.  If  a  bidder  complies  with  the  aforesaid provisions, the corporation shall forthwith return the money represented by the check of such bidder.   In case the bidder to whom the contract shall be awarded shall fail to execute  such  contract  and  bond, the moneys represented by such check shall be regarded as liquidated damages and shall be  forfeited  to  the state and shall be deposited by the corporation with the commissioner of taxation  and  finance to the credit of the general fund. The gross sums indicated on the proposals when  opened  shall  be  publicly  read.  The corporation  shall  keep the bids for the several items of the proposals confidential until an award of the contract is  made,  after  which  the proposals shall be subject at all reasonable times to public inspection.   3. Award of contract. The contract for the improvement, maintenance or repair  of  any  part of the canal system shall be awarded to the lowest responsible bidder,  as  will  best  promote  the  public  interest.  No contract  shall be awarded to a bidder other than the lowest responsible bidder without the written approval of the comptroller. The  lowest  bid shall  be  deemed  to be that which specifically states the lowest gross sum for which the entire work will be performed, including all the items specified in the estimate therefor. The lowest bid shall  be  determined by  the  corporation  on the basis of the gross sum for which the entire work will be performed, arrived at by a correct computation of  all  the items specified in the estimate therefor at the unit prices contained in the bid.   4.  Rejection  of  proposals.  The  corporation  may reject any or all proposals and may advertise  for  new  proposals  as  provided  in  this section,  if,  in  its  opinion,  the best interest of the state and the corporation will thereby be promoted.   5. Form of contract. The  corporation  shall  prescribe  the  form  of contract  and  may include therein such matters the corporation may deem advantageous to the state and the corporation.   6. Bond of contractor. Each contractor before entering into a contract for such improvement, maintenance or repair of the  canal  system  shall execute  a  bond  in  the  form  prescribed  by  the  corporation,  with sufficient sureties, to be approved by  the  corporation,  on  condition that  it  will  perform  the  work  in  accordance with the terms of the contract and the plans and specifications, and that it will commence and complete the work within the time prescribed in the contract.  The  bond shall  also provide against any direct or indirect damages that shall be suffered or claimed on  account  of  such  construction  or  improvement during the time thereof, and until the work is finally accepted.   7.  Payments on contracts, state taxes. The contract shall provide for partial payments as the work progresses as hereinafter provided:  (a) Ten per centum shall be retained from  each  progress  payment  or estimate  until  the  contract work is fifty per centum completed, after which no further moneys shall be retained from any progress payments  or estimates  paid  thereafter,  and when the entire contract work has been completed and accepted, the corporation shall, pending  the  payment  of the  final estimate, pay not to exceed fifty per centum of the amount of the retained percentage.  (b) Whenever in the judgment of the corporation the withholding of the retained percentage on account of the  closing  of  the  working  season  would  be  an injustice to the contractor, the corporation may, provided the district engineer certifies that the essential items in the contract have been completed in accordance with the terms of the contract and the provisions  of  this chapter, direct the district engineer to include in the final account such uncompleted items and pay therefor  at  the  item prices   in  the  contract  upon  the  contractor  depositing  with  the corporation securities equal to double the  value  of  such  uncompleted work.  The  deposit  may  be  used  by  the  corporation to complete the uncompleted portion of  the  contract  and  shall  be  returned  to  the contractor  if  it  completes the uncompleted portion within a specified number of working days after it has been notified to  proceed  with  the work.  (c)  No  certificates  approving  or  authorizing  a  partial or final payment shall be made by the corporation until it is satisfied that  all laborers  employed on the work have been paid for their services for the last payroll period preceding the said partial  or  final  payment.  The corporation  may,  if  it  deems necessary, require an affidavit to such effect from the contractor or it may depend on any other source which it deems proper for such information.  (d)  Contracts  in  force  at  the  date  of  the  enactment  of  this subdivision  may,  in  the  discretion of the corporation, be amended to provide for  the  withholding  and  the  payments  contemplated  by  the provisions  of  paragraph  (a)  of  this  subdivision,  if the surety or sureties upon the performance and labor and material bonds  given  by  a contractor upon any such contract shall consent in writing thereto.  (e)  No  such  certificate  authorizing or approving the first partial payment or any final payment to  a  foreign  contractor  shall  be  made unless  such  contractor shall furnish satisfactory proof that all taxes due the commissioner of taxation and finance by  such  contractor  under the provisions of or pursuant to a law enacted pursuant to the authority of article nine, nine-A, twelve-A, twenty-one, twenty-two, twenty-eight, twenty-nine  or thirty of the tax law have been paid. The certificate of the commissioner of taxation and finance to the  effect  that  all  such taxes have been paid shall be, for purpose of this paragraph, conclusive proof  of  the  payment  of such taxes. The term "foreign contractor" as used in this subdivision means, in the case of an individual,  a  person who  is  not a resident of this state, in the case of a partnership, one having one or more partners not a resident of this  state,  and  in  the case of a corporation, one not organized under the laws of this state.   8.  Contingencies  and extra work. Whenever the corporation determines that from any unforeseen cause the  terms  of  any  contract  should  be altered to provide for contingencies or extra work, it may, if funds are available  for  payment  of the cost thereof, issue an order on contract therefor to the contractor, a copy of which  shall  be  filed  with  the director  of  the  budget  and  the  state  comptroller.  The  estimated expenditure pursuant to the order on contract  shall  not  increase  the total  amount  of  the  primary contract until the estimated expenditure shall have been approved by the corporation  and  a  duplicate  of  such approval  shall have been filed with the comptroller. No such extra work shall be commenced or undertaken until the  corporation  has  issued  an order on contract as herein provided.   When  such  order  on  contract  provides for similar items of work or materials which increase or decrease the itemized quantity provided  for in  the primary contract, the price to be paid therefor shall not exceed the unit bid price in the primary contract for such items. Agreed prices for new items of work or materials may be incorporated in the  order  on contract  as  the  corporation  may  deem  them  to be just and fair and beneficial to the state, including the corporation.    Whenever the corporation also determines  that  in  the  cases  herein provided it is impracticable for it to ascertain in advance the just and fair  prices to be paid by the state for new items of work or materials, the order on contract therefor may provide for performance of  the  work and  the  furnishing  of the materials and equipment, in which event the contractor shall keep and shall make  available  at  all  times  to  the corporation  such  accounting  records,  data  and  procedure  as may be required by the corporation.