N.J. Admin. Code § 7:24A-4.2

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:24A-4.2 - Loan conditions

(a) The following requirements, in addition to the requirements of such other statutes, rules, terms and conditions as may be applicable to a particular loan, are conditions of each loan and conditions precedent to each disbursement under a loan award agreement:

1. No disbursement shall be made under a loan award agreement until a specific appropriation therefore has been made by the Legislature.

2. The borrower shall certify that the project or phase of the project was initiated and completed in accordance with the time schedule specified in the loan award agreement.

3. The borrower shall certify that the borrower and its contractors and subcontractors shall comply with all insurance requirements of the loan award agreement and certify, when appropriate, that the insurance is in full force and effect and that the premiums have been paid. The borrower shall include the State and its agencies, employees and officers as additional named insureds on any certificate of liability insurance (or other similar document evidencing liability insurance coverage) of the contractor. The borrower shall provide the Department with a copy of the certificate of liability insurance (or other similar document evidencing liability insurance coverage) prior to proceeding with the project. Such certificate shall be maintained in full force and represent a continuing obligation to include the State and its agencies, employees and officers as additional named insureds through the completion of construction. The borrower shall not alter or cancel such certificate without prior notification to the Department, in writing, 15 days in advance of any alteration or cancellation.

4. The borrower shall certify that the borrower and its contractors and subcontractors maintain their financial records in accordance with N.J.A.C. 7:24A-4.20.

5. The borrower shall certify that the borrower and its contractors and subcontractors are in compliance with the discrimination and affirmative action provisions of N.J.S.A. 10:2-1 through N.J.S.A. 10:2-4, the New Jersey Law Against Discrimination, N.J.S.A. 10:5-1 et seq., and the rules promulgated pursuant thereto.

6. The borrower shall certify that the borrower includes in all its construction or development contracts for the project a requirement that the contractor post a performance bond or other performance guarantee in an amount equal to the full cost of the project.

i. The performance bond or performance guarantee shall remain in effect until the Department conducts its final inspection of the project and states in writing to the applicant that the project is satisfactorily completed.

ii. The performance bond or performance guarantee shall be both nondiscriminatory and financially satisfactory to the Department, and meet all statutory requirements.

7. The borrower shall certify that the borrower is in compliance with all other requirements and conditions of the loan award agreement.

8. Bid specifications shall require that project elements which constitute unallowable project costs be bid as line items in the total bid specifications separate from project elements which constitute allowable project costs.

9. Bid specifications shall require that each general contractor who bids on the project shall identify in the bid submission to the borrower the principal subcontractors.

10. Before the borrower makes any final award of a construction contract, the borrower shall submit to the Department for review and approval the final construction contract, with work specifications detailing any changes made since submittal of the materials required during the project development phase pursuant to N.J.A.C. 7:24A-3.

11. Concurrent with the submittal to the Department required under (a)10 above, the borrower shall provide the Department with a tabulation of bids received and identify the general contractor to be awarded the construction contract for the project. In the event a contract is not proposed to be awarded to the contractor who has submitted the lowest bid, the borrower shall provide adequate justification for said award.

12. The Department reserves the right to require the borrower to readvertise the bid specifications for the project if the Department deems the certifications required in (a)13 below unsatisfactory.

13. The borrower shall certify the following to the Department before the borrower awards any contract on a bid.

i. The borrower is in compliance with the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq., and the Local Public Contracts rules, N.J.A.C. 5:34;

ii. All contracts for the project will be awarded to the qualified, responsible and responsive bidder who submits the lowest acceptable bid; and

iii. The bid prices included in the bid specifications are reasonably balanced.

14. The borrower shall insert in all contracts or subcontracts that the borrower awards pursuant to this chapter the Department's subcontractor certification form as included in the loan award agreement.

15. The borrower shall submit one copy of the executed construction contract and subcontracts and associated documents to the Department within 10 days of their execution.

N.J. Admin. Code § 7:24A-4.2