N.Y. Education Law § 482: Letting of construction contracts

§ 482. 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 any combined occupancy

structure shall contain a provision that, when the entire cost of any

such contemplated construction, reconstruction, rehabilitation or

improvement 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 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. Except as otherwise provided by the public housing

law, the provisions of which shall apply when the developer is the

Yonkers 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

Yonkers 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

or her subcontractors in the prosecution of the entire work provided for

in such lease or other agreement. Whenever the developer is the Yonkers

city housing authority, it shall require each of its contractors to

furnish such bond 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.

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 general contractor 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 the 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 or she maintains an office or conducts his or her

business or at his or her residence.