2023 New York Laws › EDN - Education › Title 1 - General Provisions › Article 10 - New York City Educational Construction Fund › 458 - Letting of Construction Contracts.

§ 458. Letting  of  construction contracts. 1. Any contract let by the
  fund  or  by  any  letting  agency  on  behalf  of  the  fund  for   the
  construction,   reconstruction,   rehabilitation  or  improvement  of  a
  combined occupancy structure or of the school portion thereof, shall  be
  in  conformity  with  the  provisions  of section one hundred one of the
  general municipal law.
2. Except as otherwise provided in section two hundred  twenty-two  of
  the  labor law, every contract, lease or other agreement entered into by
  or on behalf of the  fund  for  the  acquisition,  lease,  construction,
  reconstruction,  rehabilitation  or improvement of the school portion of
  the work in any combined occupancy structure shall contain  a  provision
  that,  when  the  entire  cost  of  any  such contemplated construction,
  reconstruction, rehabilitation or improvement for the school portion  of
  the  work  shall  exceed  three  million  dollars in the counties of the
  Bronx, Kings, New York, Queens, and Richmond; one million  five  hundred
  thousand dollars in the counties of Nassau, Suffolk and Westchester; and
  five  hundred  thousand  dollars in all other counties within the state,
  separate specifications  shall  be  prepared  for  the  following  three
  subdivisions of the work on the school portion to be performed:
a. Plumbing and gas fitting;
b.  Steam heating, hot water heating, ventilating and air conditioning
  apparatus; and
c. Electric wiring and standard illuminating fixtures.
Such specifications shall be drawn so as  to  permit  the  letting  of
  separate   and  independent  contracts  for  each  of  the  above  three
  subdivisions of work. Within the above three subdivisions of  work,  any
  equipment,  apparatus  and/or  installations  which shall be designed to
  service the entire combined occupancy structure shall be included within
  the school portion of the  work  or  let  as  separate  and  independent
  contracts  even  if  physically located within the non-school portion of
  the work. Except as otherwise provided by the public  housing  law,  the
  provisions  of which shall apply when the developer is the New York city
  housing authority, every developer or general contractor undertaking the
  construction, reconstruction, rehabilitation or improvement of any  such
  combined  occupancy  structure  pursuant  to  or  in  furtherance of the
  provisions of this article shall let separate contracts  to  the  lowest
  responsible  bidder  for  the  three subdivisions of the above specified
  work to persons, firms or corporations approved by the chairman  of  the
  fund  as  being  qualified,  responsible and reliable bidders engaged in
  these classes of work. All such qualified bidders engaged in  the  above
  specified  work shall be entitled to bid and to receive, upon request, a
  copy of the plans and specifications. All such bids shall  be  submitted
  to the fund and shall be opened publicly at a stated time and place.
2-a.  Each  bidder on a public work contract, where the preparation of
  separate specifications is not required, shall submit  with  its  bid  a
  separate  sealed list that names each subcontractor that the bidder will
  use to perform work on the contract, and the agreed-upon  amount  to  be
  paid  to  each,  for: a. plumbing and gas fitting, b. steam heating, hot
  water  heating,  ventilating  and  air  conditioning  apparatus  and  c.
  electric wiring and standard illuminating fixtures. After the low bid is
  announced, the sealed list of subcontractors submitted with such low bid
  shall be opened and the names of such subcontractors shall be announced,
  and  thereafter  any change of subcontractor or agreed-upon amount to be
  paid to each shall require the approval of  the  public  owner,  upon  a
  showing  presented  to  the public owner of legitimate construction need
  for such change, which shall be open to  public  inspection.  Legitimate
  construction  need  shall  include,  but  not be limited to, a change in
  project specifications, a  change  in  construction  material  costs,  a

  change  to  subcontractor status as determined pursuant to paragraph (e)
  of subdivision two of section two hundred twenty-two of the  labor  law,
  or   the   subcontractor  has  become  otherwise  unwilling,  unable  or
  unavailable   to   perform   the   subcontract.   The  sealed  lists  of
  subcontractors submitted by all other bidders shall be returned to  them
  unopened after the contract award.
3.  a. In addition to other bond or bonds, if any, required by law for
  the completion of the school portion of a combined occupancy  structure,
  or  in  the absence of any such requirement, the fund shall nevertheless
  require, prior to the approval of any lease or other agreement providing
  for the construction, reconstruction, rehabilitation or  improvement  of
  any  combined occupancy structure, that the developer, if other than the
  New York city housing authority, or general contractor, furnish  a  bond
  guaranteeing  prompt  payment  of  moneys  due to all persons furnishing
  labor or materials to or for the person furnishing said bond or  to  his
  subcontractors  in  the  prosecution  of the entire work provided for in
  such lease or other agreement. Whenever the developer is  the  New  York
  city  housing  authority,  it  shall  require each of its contractors to
  furnish such bonds to said authority and fund with respect to  the  work
  to  be  performed  and  materials  supplied  by  such contractor, and no
  separate or other payment bond shall be required to be furnished to  the
  fund. In those instances where the developer or general contractor is an
  agency of the state or a public-benefit corporation created by an act of
  the  state  legislature and in instances where said developer or general
  contractor or the guarantor of payment of the construction costs of  the
  non-school  portion  of  the  combined "occupancy structure" is a public
  utility corporation or a bank, trust company or savings bank as  defined
  in  section two of the banking law, or a national bank having its office
  and principal place of business in this state, or a subsidiary of such a
  bank or trust company of which at least eighty (80%)  percent  of  whose
  stock  is  owned  by  it, the said developer or general contractor shall
  only be required to furnish said payment bond with respect to the school
  portion of the combined occupancy structure. In such instances, the said
  payment bond shall not be required by  the  fund  with  respect  to  the
  non-school  portion  of  the  combined occupancy structure, but, in lieu
  thereof,  such  fund  shall  require   said   agency,   public   benefit
  corporation,  public  utility corporation or banking institution, as the
  case may be to guarantee payment of all construction costs with  respect
  to the non-school portion of the combined occupancy structure.
b.  A  copy  of  such  payment bond shall be kept in the office of the
  chairman of the fund and a copy shall also be kept in the office of  the
  board of education; such copies shall be open to public inspection.
c.  Every  person  who  has furnished labor or material, to or for the
  developer or contractor furnishing such payment bond or to  his  or  her
  subcontractors  in the prosecution of the work provided for in the lease
  or other agreement for which said bond is furnished and who has not been
  paid in full therefor before the expiration of a period of  ninety  days
  after  the  day on which the last of the labor was performed or material
  was furnished by him or her for which the claim is made, shall have  the
  right to sue on such payment bond in his or her own name for the amount,
  or  the  balance  thereof,  unpaid  at  the  time of commencement of the
  action; provided, however, that a person  having  a  direct  contractual
  relationship  with  a  subcontractor  of  the  developer  or  contractor
  furnishing the payment bond but no contractual relationship  express  or
  implied  with  such  developer  or  contractor shall not have a right of
  action upon the bond unless he or she shall have given written notice to
  such developer or contractor furnishing the bond within ninety days from
  the date on which the last of the labor was performed or the last of the

  material was furnished, for which his or her claim is made, stating with
  substantial accuracy the amount claimed and the name  of  the  party  to
  whom the material was furnished or for whom the labor was performed. The
  notice  shall  be  served  by  delivering  the  same  personally  to the
  developer or contractor furnishing said bond or by mailing the  same  by
  registered  mail,  postage  prepaid,  in  an  envelope addressed to such
  developer or contractor at any place where he  maintains  an  office  or
  conducts his or her business or at his or her residence.