NY Pub Auth L § 1735 (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 6 - The New York City School Construction Authority Act 1735 - Certain Contracts of the Authority.

* §  1735.  Certain contracts of the authority. 1. Notwithstanding the   provisions of paragraph  b  of  subdivision  one  of  section  seventeen   hundred  thirty-four  of this title, the award of construction contracts   by the authority between July first, nineteen  hundred  eighty-nine  and   June  thirtieth,  two  thousand twenty-four, shall not be subject to the   provisions of section one hundred one of the general municipal law.2. Notice of the invitation for  bids  for  contracts  to  be  awarded   pursuant  to  this section shall state the time and place of the receipt   and opening of bids.3. All bidders shall submit to the authority, prior to the opening  of   a  bid  for  the  award  of a contract under this section, a sealed list   identifying the names of each subcontractor each contractor proposes  to   utilize  under  the  contract  for  the  performance  of  the  following   subdivisions of work:a. Plumbing and gas fitting;b. Steam heating, hot water heating, ventilating and air  conditioning   apparatus; andc. Electric wiring and standard illuminating fixtures.The  low  bidder  shall specify in such list the estimated value to be   paid each such subcontractor for  the  work  to  be  performed  by  such   subcontractor.  After  the authority has announced the low bidder at the   bid opening, the authority shall open only such  low  bidder's  separate   sealed list and shall read aloud such subcontractors listed therein. All   such  sealed  lists  except  those  of  the low bidder shall be returned   unopened to their respective contractors following  the  awarding  of  a   contract.4.  The  authority shall establish a committee to review and report on   contracts issued pursuant to this section  and  on  the  procedures  and   methodology  of  the  authority  in  awarding such contracts. The review   shall include, but not be limited to, the degree  to  which  contractors   awarded  contracts  pursuant  to  such paragraph, and the subcontractors   utilized by  them,  utilize  employees  who  are  represented  by  labor   organizations, comply with existing labor standards, maintain harmonious   labor  relations  and  recognize state approved apprentice programs. The   committee shall, from time  to  time,  issue  economic  and  statistical   reports  dealing with the costs of construction under this article. Such   reports shall deal with the costs  of  labor,  material,  equipment  and   profit.  The  committee shall have no authority to approve or disapprove   contracts. The committee shall be composed of two  representatives  from   the  authority,  one  representative from the board, two representatives   from construction-related labor organizations  and  two  representatives   from  the  construction industry, at least one of whom shall be involved   in the subdivisions of work  described  in  subdivision  three  of  this   section.  The  president of the authority shall designate the members of   the committee, provided, however, that the president shall designate the   representatives of labor organizations from a list of names submitted by   the New York state AFL-CIO.5. In awarding contracts pursuant to this section the authority shall,   in addition to the factors set forth in  subdivision  three  of  section   seventeen  hundred  thirty-four  of  this  title, consider the following   factors  when  establishing  a  list  of   pre-qualified   bidders   for   construction work: (a) the degree to which a contractor or subcontractor   utilizes  employees who are represented by a labor organization; (b) the   absence of any intentional misrepresentation with  regard  to  lists  of   subcontractors  previously  submitted  pursuant  to  the  provisions  of   subdivision two of this section; and (c) the record  of  the  bidder  in   complying  with  existing  labor standards, maintaining harmonious labor   relations and recognizing state approved apprentice programs. 6. The authority  shall  provide  in  its  construction,  erection  or   alteration  contracts which implement a five year educational facilities   capital plan a provision that shall  require  each  contractor  to  make   prompt payment to its subcontractors performing each subdivision of work   listed  in subdivision three of this section. Within seven calendar days   of the receipt of any payment from the authority, the  contractor  shall   pay  to  each  such  subcontractor  that portion of the proceeds of such   payment  representing  the  value  of  the  work   performed   by   such   subcontractor, based upon the actual value of the subcontract, which has   been approved and paid for by the authority, less an amount necessary to   satisfy  any  claims, liens or judgments against the subcontractor which   have not been suitably discharged and less any amount  retained  by  the   contractor  as  provided  herein.  For such purpose, the subcontract may   provide that the contractor may retain not more than five per centum  of   each  payment  to  the  subcontractor or not more than ten per centum of   each such  payment  if  prior  to  entering  into  the  subcontract  the   subcontractor  is  unable or unwilling to provide, at the request of the   contractor, a performance bond and a labor and material bond both in the   amount of the subcontract.At the time of making a payment to the contractor for  work  performed   by  the  subcontractors  set forth in subdivision three of this section,   the authority shall file in its office  for  review  a  record  of  such   payment.    If any such subcontractor shall notify the authority and the   contractor in writing that the contractor has failed to make  a  payment   to  it  as  provided  herein  and the contractor shall fail, within five   calendar days after receipt of such notice, to furnish either  proof  of   such  payment  or notice that the amount claimed by the subcontractor is   in dispute, the authority shall withhold from amounts then or thereafter   becoming due and payable to the  contractor,  other  than  from  amounts   becoming  due  and  payable  to the contractor representing the value of   work approved by the authority and performed by other subcontractors and   which the contractor is required to pay to  such  subcontractors  within   seven  calendar  days as herein provided, an amount equal to one hundred   fifty percent of that portion of the authority's prior  payment  to  the   contractor  which the subcontractor claims to be due it, shall remit the   amount when and so withheld to the subcontractor and deduct such payment   from the amounts then otherwise due and payable to the contractor, which   payment shall, as between the contractor and the authority, be deemed  a   payment  by the authority to the contractor. In the event the contractor   shall notify the authority as above  provided  that  the  claim  of  the   subcontractor  is  in dispute, the authority shall withhold from amounts   then or thereafter becoming due and payable  to  the  contractor,  other   than   from   amounts   becoming  due  and  payable  to  the  contractor   representing the value of work approved by the authority  and  performed   by  other  subcontractors and which the contractor is required to pay to   such subcontractors within seven calendar days as  herein  provided,  an   amount  equal  to  one  hundred  fifty  percent  of  that portion of the   authority's prior payment to  the  contractor  which  the  subcontractor   claims  to  be  due it and deposit such amount when and so withheld in a   separate interest-bearing account pending resolution of the dispute, and   the amount so deposited together with the interest thereon shall be paid   to the party or parties ultimately determined to be entitled thereto, or   until the contractor and subcontractor shall otherwise agree as  to  the   disposition  thereof.    In the event the authority shall be required to   withhold amounts from a contractor for the  benefit  of  more  than  one   subcontractor,  the  amounts so withheld shall be applied to or for such   subcontractors in the order in which the written notices  of  nonpayment   have  been  received  by the authority, and if more than one such notice    was received on the same day, proportionately based upon the  amount  of   the  subcontractor  claims  received  on  such  day. Notwithstanding the   foregoing, in lieu of withholding such amount or amounts in dispute, the   contractor  may  post  a  bond or other form of undertaking guaranteeing   payment of such disputed amounts. Nothing herein contained shall prevent   the authority  from  commencing  an  interpleader  action  to  determine   entitlement  to  a  disputed  payment  in  accordance  with  section one   thousand six of the civil practice  law  and  rules,  or  any  successor   provision  thereto.  In  the  event  the authority does not withhold the   required amounts within sixty days after the written  notification  from   the  subcontractor  regarding failure of the contractor to make payment,   the subcontractor may file a lien under article two of the lien  law  as   the sole remedy in lieu of the remedy provided under this subdivision.Payment  to  a  subcontractor  shall  not  relieve the contractor from   responsibility for the work covered by the payment. Except as  otherwise   provided,  nothing  contained  herein shall create any obligation on the   part of the authority to  pay  any  subcontractor,  nor  shall  anything   provided  herein  serve  to  create  any  relationship  in  contract  or   otherwise, implied or  expressed,  between  the  subcontractor  and  the   authority.The  provisions  of  this  subdivision  shall not be applicable to the   subcontractors  of  a  contractor  whose  contract  is  limited  to  the   performance  of a single subdivision of work listed in subdivision three   of this section.7. The provisions of this section shall cease to be in effect  in  the   event  any  of  the  provisions  of this section shall be adjudged to be   invalid by the final judgment of a court of competent jurisdiction  from   which  judgment  all  appeals  or  applications  for  relief  have  been   exhausted or the time therefor has expired, provided, however, that such   appeals or applications are pursued promptly.* NB Repealed June 30, 2024