N.Y. Public Authorities Law § 1181: Construction contracts

§ 1181. Construction contracts. If the project, or any portion

thereof, or any addition, betterment or extension to the facilities,

shall be constructed pursuant to a contract for which the estimated cost

exceeds seven thousand dollars, such contract shall be awarded to the

lowest responsible bidder after advertisement for bids. The board may

make rules and regulations for the submission of bids and the

construction of the project or such portion thereof or such addition,

betterment, or extension. No contract shall be entered into for

construction of the project or any portion thereof or any addition,

betterment or extension to the facilities, or for the purchase of

materials, unless the contractor shall give an undertaking with a

sufficient surety or sureties approved by the authority and in an amount

fixed by the authority, for the faithful performance of the contract. As

to contracts entered into for construction, such undertaking shall

provide, among other things, that the person or corporation entering

into such contract with the authority, will pay for all materials

furnished and services rendered for the performance of the contract and

that any person or corporation furnishing such materials or rendering

such services may maintain an action to recover for the same against the

obligor in the undertaking as though such person or corporation was

named therein, provided the action is brought within one year after the

time the cause of action accrued. Nothing in this section shall be

construed to limit the power of the authority to construct the project

or any portion thereof or any addition, betterment or extension to the

facilities directly by the officers, agents, and employees of the

authority or otherwise than by contract. The authority may proceed

jointly with the state of New York in the construction of any highway

which also includes sewage and storm water facilities and by agreement

with the state of New York fix and determine the amount which shall

constitute the contribution by the authority toward the cost of the

construction by the state of New York of such facilities in connection

with the construction or improvement of any highway. The portion of the

cost to be paid by the authority shall be deposited with the state

comptroller, who is authorized to receive and accept the same. Upon

completion of any project authorized by this section the commissioner of

transportation shall render to the authority an itemized statement

showing in full (a) the amount of money deposited as hereinbefore

provided, and (b) all disbursements made pursuant to this section. Any

surplus money shall be paid to such authority on the warrant of the

comptroller on vouchers therefore approved by the commissioner of

transportation.