2023 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; and
c. 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