N.J. Admin. Code § 17:12-2.5

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:12-2.5 - Performance security

(a) The Director may determine performance security is warranted for a particular contract and, if so, shall set the amount of security necessary to protect the State's interests.

(b) Performance security, in such amount as the Director deems necessary, shall consist of a certified or cashier's check drawn to the order of "Treasurer, State of New Jersey," an individual or annual performance bond issued by an insurance or security company authorized to do business in the State of New Jersey, or an irrevocable letter of credit issued by a Federally insured financial institution and naming "Treasurer, State of New Jersey" as beneficiary, and/or other form of security as required by the Director.

(c) A contractor's failure to submit the required performance security is sufficient cause for the Director to cancel the contract and assess the contractor for any costs incurred by the State.

N.J. Admin. Code § 17:12-2.5

Emergency amendment, R.1989 d.481, effective 8/14/1989 (expired October 13, 1989).
See: 21 N.J.R. 2810(a).
In (a), Director's "designee" and "irrevocable letter of credit" option added. Subsection (b) added.
Adopted concurrent proposal, R.1989 d.554, effective 10/13/1989.
See: 21 N.J.R. 2810(a), 21 N.J.R. 3545(b).
Provisions of emergency amendment R.1989 d.481 readopted without change.
Recodified from N.J.A.C. 17:12-2.3 and amended by R.1999 d.407, effective 11/15/1999.
See: 31 N.J.R. 2301(a), 31 N.J.R. 3742(b).
Rewrote the section. Former N.J.A.C. 17:12-2.5, Cause for automatic rejection of bids, repealed.
Amended by R.2012 d.074, effective 4/2/2012.
See: 43 N.J.R. 3308(a), 44 N.J.R. 1143(b).
In (b), inserted ", and/or other form of security as required by the Director".