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A5335
ASSEMBLY, No. 5335
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED JUNE 28, 2026
Sponsored by:
Assemblyman� CLINTON CALABRESE
District 36 (Bergen and Passaic)
SYNOPSIS
���� Prohibits withholding of partial payments to
contractors by public entities for de minimis clerical, administrative, or
technical errors.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
prohibiting the withholding of partial payments to
contractors by public entities for de minimis clerical, administrative, or
technical errors, amending various parts of the statutory law, and
supplementing Title 52 of the Revised Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.� Section 2 of P.L.1991,
c.133 (C.2A:30A-2) is amended to read as follows:
���� 2. a. If a prime contractor
has performed in accordance with the provisions of a contract with the owner
and the billing for the work has been approved and certified by the owner or
the owner's authorized approving agent, the owner shall pay the amount due to
the prime contractor for each periodic payment, final payment or retainage
monies not more than 30 calendar days after the billing date, which for a
periodic billing, shall be the periodic billing date specified in the
contract.� The billing shall be deemed approved and certified 20 days after the
owner receives it unless the owner provides, before the end of the 20-day
period, a written statement of the amount withheld and the reason for
withholding payment, except that in the case of a public or governmental entity
that requires the entity's governing body to vote on authorizations for each
periodic payment, final payment or retainage monies, the amount due may be
approved and certified at the next scheduled public meeting of the entity's
governing body, and paid during the entity's subsequent payment cycle, provided
this exception has been defined in the bid specifications and contract
documents.
���� b.��� If a subcontractor or
subsubcontractor has performed in accordance with the provisions of its
contract with the� prime contractor or subcontractor and the work has been
accepted by the owner, the owner's authorized approving agent, or the prime
contractor, as applicable, and the parties have not otherwise agreed in
writing, the prime contractor shall pay to its subcontractor and the
subcontractor shall pay to its subsubcontractor within 10 calendar days of the
receipt of each periodic payment, final payment or receipt of retainage monies,
the full amount received for the work of the subcontractor or subsubcontractor
based on the work completed or the services rendered under the applicable
contract.� In the case of ongoing work on the same project for which partial
payments are made, the amount of money owed for work already completed shall
only be payable if the subcontractor or subsubcontractor is performing to the
satisfaction of the prime contractor or subcontractor, as applicable.
���� c.���� If a payment due
pursuant to the provisions of this section is not made in a timely manner, the
delinquent party shall be liable for the amount of money owed under the
contract, plus interest at a rate equal to the prime rate plus
[
1%
]
1 percent
.�
Interest on amounts due pursuant to this section shall be paid to the prime
contractor, subcontractor or subsubcontractor for the period beginning on the
day after the required payment date and ending on the day on which the check
for payment has been drawn.� The provisions of this subsection c. shall not
apply to any transportation project as defined in section 3 of P.L. 1984, c.73
(C.27:1B-3), if that project receives federal funding and the awarding agency
has been notified by the federal government that it will be classified as a
high risk grantee pursuant to 49 C.F.R. 18.12.
���� d.��� A prime contractor,
subcontractor or subsubcontractor� may, after providing seven calendar days'
written notice to the party failing to make the required payments, suspend
performance of a construction contract, without penalty for breach of contract,
until the payment required pursuant to this section is made, if the contractor,
subcontractor or subsubcontractor: is not paid as required by this section; is
not provided a written statement of the amount withheld and the reason for the
withholding; and the payor is not engaged in a good faith effort to resolve the
reason for the withholding.� The provisions of this subsection d. shall not
apply to any transportation project as defined in section 3 of P.L. 1984, c.73
(C.27:1B-3), if that project receives federal funding and the application of
this provision would jeopardize the funding because the owner could not meet
the federal standards for financial management systems as outlined in 49 C.F.R.
18.20.
���� e. (1) The rights, remedies or
protections provided by this section for prime contractors, subcontractors and
subsubcontractors shall be in addition to other remedies provided pursuant to
any other provision of State law.� To the extent that the provisions of this
section provide greater rights, remedies or protections for prime contractors,
subcontractors and subsubcontractors than other provisions of State law, the
provisions of this section shall supersede those other provisions.
���� (2)�� No provision of this
section shall be construed as restricting in any way the rights or remedies
provided by any other applicable State or federal law to an owner who is a
resident homeowner or purchaser with respect to the real property being
improved.
���� f.���� All contracts for the
improvement of structures entered into after the effective date of P.L.2006,
c.96 between owners, prime contractors, subcontractors or subsubcontractors
shall provide that disputes regarding whether a party has failed to make payments
required pursuant to this section may be submitted to a process of alternative
dispute resolution.� Alternative dispute resolution permitted by this section
shall not apply to disputes concerning the bid solicitation or award process,
or to the formation of contracts or subcontracts.� In any civil action brought
to collect payments pursuant to this section, the action shall be conducted
inside of this State and the prevailing party shall be awarded reasonable costs
and attorney fees.
����
g.� Notwithstanding any law,
rule, or regulation to the contrary, when a public or governmental entity is
the owner of real property that is under contract to be improved, such entity
shall not withhold a partial payment otherwise due pursuant to this section
solely on the basis of a de minimis clerical, administrative, or technical
error, provided that:
����
(1) �the work associated
with the payment has been satisfactorily performed in accordance with the
contract;
����
(2) �the error does not
affect the cost, scope, safety, insurance coverage, bonding, or eligibility of
the work;
����
(3) �the error is not
related to fraud, misrepresentation, or a material contractual requirement; and
����
(4) �the payment is not the
final payment due pursuant to the contract.
����
The entity shall provide
written notice to the contractor identifying the clerical, administrative, or
technical error and shall require correction of such error within a reasonable
cure period, not to exceed 10 business days. �Failure to cure the error within
the specified time period may result in the withholding of subsequent payments
by the entity or any other remedies available to the entity pursuant to the
contract or law.
����
For the purposes of this subsection,
�clerical, administrative, or technical error� means an unintentional error,
omission, defect, or minor mathematical discrepancy in a payment application or
supporting documentation that does not materially affect the amount due, the
contractor�s performance of the contract, or the public or governmental entity�s
ability to lawfully make the payment.
(cf: P.L.2006, c.96, s.2)
���� 2.� Section 3 of P.L.1987,
c.343 (C.18A:18A-40.3) is amended to read as follows:
���� 3.���
a.
� With respect
to any contract entered into by a board of education pursuant to section 1 of
P.L.1987, c.343 (C.18A:18A-40.1) for which the contractor shall agree to the
withholding of payments pursuant to section 2 of P.L.1987, c.343
(C.18A:18A-40.2),
[
5%
]
5 percent
of the amount due on each partial payment shall be withheld by the board of
education pending completion of the contract if the contractor does not have a
performance bond.� If the contractor does have a performance bond,
[
2%
]
2 percent
of the amount due on each partial payment shall be withheld by the board of
education when the outstanding balance of the contract exceeds $500,000, and
[
5%
]
5 percent
of the amount due on each partial payment shall be withheld by the board of
education when the outstanding balance of the contract is $500,000 or less.
����
b.� Notwithstanding any
law, rule, or regulation to the contrary, a board of education shall not
withhold a partial payment otherwise due pursuant to subsection a. of this
section solely on the basis of a de minimis clerical, administrative, or
technical error, provided that:
����
(1)� the work associated
with the payment has been satisfactorily performed in accordance with the
contract;
����
(2)� the error does not
affect the cost, scope, safety, insurance coverage, bonding, or eligibility of
the work;
����
(3)� the error is not
related to fraud, misrepresentation, or a material contractual requirement; and
����
(4)� the payment is not the
final payment due pursuant to the contract.
����
The board of education
shall provide written notice to the contractor identifying the clerical,
administrative, or technical error and shall require correction of such error within
a reasonable cure period, not to exceed 10 business days.� Failure to cure the
error within the specified time period may result in the withholding of
subsequent payments by the board or any other remedies available to the board
pursuant to the contract or law.
����
For the purposes of this
subsection, �clerical, administrative, or technical error� means an
unintentional error, omission, defect, or minor mathematical discrepancy in a
payment application or supporting documentation that does not materially affect
the amount due, the contractor�s performance of the contract, or the board of
education�s ability to lawfully make the payment.
(cf: P.L.1999, c.440, s.76)
���� 3.� Section 3 of P.L.2013,
c.147 (C.18A:64-76.4) is amended to read as follows:
���� 3.��� a.� With respect to any
contract entered into by a State college pursuant to section 2 of P.L.2013,
c.147 (C.18A:64-76.3) for which the contractor shall agree to the withholding
of payments pursuant to section 1 of P.L.2013, c.147 (C.18A:64-76.2),
[
2%
]
2 percent
of the amount due on each partial payment shall be withheld by the State
college pending completion of the contract.
���� b.��� Upon acceptance of the
work performed pursuant to the contract for which the contractor has agreed to
the withholding of payments pursuant to subsection a. of this section, all
amounts being withheld by the State college shall be released and paid in full
to the contractor within 45 days of the final acceptance date agreed upon by
the contractor and the State college, without further withholding of any
amounts for any purpose whatsoever, provided that the contract has been
completed as indicated.� If the State college requires maintenance security
after acceptance of the work performed pursuant to the contract, such security
shall be obtained in the form of a maintenance bond.� The maintenance bond
shall be no longer than two years and shall be no more than
[
100%
]
100
percent
of the project costs.�
����
c.� Notwithstanding any
law, rule, or regulation to the contrary, a State college shall not withhold a
partial payment otherwise due pursuant to this section solely on the basis of a
de minimis clerical, administrative, or technical error, provided that:
����
(1)� the work associated
with the payment has been satisfactorily performed in accordance with the
contract;
����
(2)� the error does not
affect the cost, scope, safety, insurance coverage, bonding, or eligibility of
the work;
����
(3)� the error is not
related to fraud, misrepresentation, or a material contractual requirement; and
����
(4)� the payment is not the
final payment due pursuant to the contract.
����
The State college shall
provide written notice to the contractor identifying the clerical,
administrative, or technical error and shall require correction of such error within
a reasonable cure period, not to exceed 10 business days.� Failure to cure the
error within the specified time period may result in the withholding of
subsequent payments by the State college or any other remedies available to the
State college pursuant to the contract or law.
����
For the purposes of this
subsection, �clerical, administrative, or technical error� means an
unintentional error, omission, defect, or minor mathematical discrepancy in a
payment application or supporting documentation that does not materially affect
the amount due, the contractor�s performance of the contract, or the State
college�s ability to lawfully make the payment.
(cf: P.L.2013, c.147, s.3)
���� 4.� R.S.27:7-34 is amended to
read as follows:
���� 27:7-34. �
a.
�Contracts
shall provide for partial payments at least once each month or from time to
time as the work progresses on work of construction or maintenance.� Two
[
per centum
]
percent
of the amount due on partial payments of the total contract price shall be
withheld from the contractor pending completion of the contract, but upon
substantial completion of the contract, as defined by rules or regulations of
the department
[
1%
]
1 percent
shall be withheld.� At any time during the performance of the work, if work is
not progressing, as defined by the "New Jersey Department of
Transportation Standard Specifications for Road and Bridge Construction,"
the commissioner may at the commissioner's discretion, increase the withholding
to
[
4%
]
4 percent
of the payment due.� No retainage shall be withheld on service contracts
including, but not limited to, mowing, sweeping, tree trimming and similar
contracts.� Any partial payments made after substantial completion of the
contract shall be made only upon certification by the general contractor to the
department that all subcontractors have been paid in the same proportion that
he has been paid; however, should the amount owed by a general contractor to a
subcontractor be in dispute the department shall be empowered to advance to the
general contractor the amount in dispute after a determination by the
commissioner.
���� Contracts may also provide for
partial payments at least once in each month or from time to time as the work
progresses on all materials placed along or upon the site, or stored at
locations approved by the commissioner, which are suitable for the use and
execution of the contract, provided the contractor furnishes releases of liens
for all materials furnished at the time each estimate of work is submitted for
payment, but such partial payments shall not exceed the cost of the material.
���� When the contract provides
that a portion of the work may be deferred with the approval of the
commissioner, the sum withheld from the contractor may not be less than
[
25%
]
25 percent
of the value of said work.
���� Any money heretofore or
hereafter withheld from contract payments as provided for herein shall be paid
by the State to any contractor entitled thereto who shall deposit under terms
of an escrow agreement, in a banking institution located in this State and
approved by the commissioner, negotiable bonds, acceptable to the commissioner,
issued by the State or any political subdivision thereof, said bonds having
value equal to the amount of money to be� paid to any such contractor.� For
purposes of this section, value shall mean par value or market value, whichever
is lower.
����
b.� Notwithstanding any
law, rule, or regulation to the contrary, the department shall not withhold a
partial payment otherwise due pursuant to subsection a. of this section solely
on the basis of a de minimis clerical, administrative, or technical error,
provided that:
����
(1)� the work associated
with the payment has been satisfactorily performed in accordance with the
contract;
����
(2)� the error does not
affect the cost, scope, safety, insurance coverage, bonding, or eligibility of
the work;
����
(3)� the error is not
related to fraud, misrepresentation, or a material contractual requirement; and
����
(4)� the payment is not the
final payment due pursuant to the contract.
����
The department shall
provide written notice to the contractor identifying the clerical,
administrative, or technical error and shall require correction of such error within
a reasonable cure period, not to exceed 10 business days.� Failure to cure the
error within the specified time period may result in the withholding of
subsequent payments by the department or any other remedies available to the
department pursuant to the contract or law.
����
For the purposes of this
subsection, �clerical, administrative, or technical error� means an
unintentional error, omission, defect, or minor mathematical discrepancy in a
payment application or supporting documentation that does not materially affect
the amount due, the contractor�s performance of the contract, or the department�s
ability to lawfully make the payment.
(cf: P.L.2005, c.356, s.1)
���� 5.� R.S.27:14-16 is amended to
read as follows:
����
27:14-16.� a.
�
Contracts may provide for partial payments at least once each month or from
time to time as the work progresses on work of construction or maintenance.�
Ten
[
per
centum
]
percent
of the amount due on partial payments on the first
[
50%
]
50 percent
of the total contract price shall be withheld from the contractor pending
completion of the contract.� Thereafter, on the remaining
[
50%
]
50 percent
of the total contract price, no
[
per
centum
]
percentage
of the partial payments shall be withheld from the contractor
pending such completion.
���� Contracts may also provide for
partial payments at least once in each month or from time to time as the work
progresses on all materials placed upon the site which are suitable for the use
and execution of the contract, provided the contractor furnishes releases of
liens for all material furnished at the time each estimate of work is submitted
for payment, but such partial payments shall not exceed
[
80%
]
80 percent
of the value of the material.
����
b.� Notwithstanding any
law, rule, or regulation to the contrary, the board of county commissioners
shall not withhold a partial payment otherwise due pursuant to this section
solely on the basis of a de minimis clerical, administrative, or technical
error, provided that:
����
(1)� the work associated
with the payment has been satisfactorily performed in accordance with the
contract;
����
(2)� the error does not
affect the cost, scope, safety, insurance coverage, bonding, or eligibility of
the work;
����
(3)� the error is not
related to fraud, misrepresentation, or a material contractual requirement; and
����
(4)� the payment is not the
final payment due pursuant to the contract.
����
The board of county
commissioners shall provide written notice to the contractor identifying the
clerical, administrative, or technical error and shall require correction of
such error within a reasonable cure period, not to exceed 10 business days.�
Failure to cure the error within the specified time period may result in the
withholding of subsequent payments by the board or any other remedies available
to the board pursuant to the contract or law.
����
For the purposes of this
subsection, �clerical, administrative, or technical error� means an
unintentional error, omission, defect, or minor mathematical discrepancy in a
payment application or supporting documentation that does not materially affect
the amount due, the contractor�s performance of the contract, or the board of
county commissioners� ability to lawfully make the payment.
(cf: P.L.1958, c.7, s.2)
���� 6.� Section 1 of P.L.2007,
c.180 (C.27:23-6.3) is amended to read as follows:
���� 1.���
a.
� Contracts
entered into by the New Jersey Turnpike Authority for roadway construction and
maintenance shall provide for partial payments at least once each month or from
time to time as the work progresses on work of construction or maintenance.�
Two
[
per
centum
]
percent
of the amount due on partial payments of the total contract
price shall be withheld from the contractor pending completion of the contract,
but upon substantial completion of the contract, as defined by rules or
regulations of the authority,
[
1%
]
1 percent
shall be withheld.� At any time during the performance of the work, if work is
not progressing, as defined by the "New Jersey Turnpike Authority Standard
Specifications," the authority may, in its discretion, increase the
withholding to
[
4%
]
4 percent
of the payment due.� No retainage shall be withheld on service contracts
including, but not limited to, mowing, sweeping, tree trimming and similar
contracts.� Any partial payments made after substantial completion of the
contract shall be made only upon certification by the general contractor to the
authority that all subcontractors have been paid in the same proportion that he
has been paid; however, should the amount owed by a general contractor to a
subcontractor be in dispute the authority shall be empowered to advance to the
general contractor the amount in dispute after a determination by the
authority.
���� Contracts may also provide for
partial payments at least once in each month or from time to time as the work
progresses on all materials placed along or upon the site, or stored at
locations approved by the authority, which are suitable for the use and execution
of the contract, provided the contractor furnishes releases of liens for all
materials furnished at the time each estimate of work is submitted for payment,
but such partial payments shall not exceed the cost of material.
���� When the contract provides
that a portion of the work may be deferred with the approval of the authority,
the sum withheld from the contractor may not be less than
[
25%
]
25 percent
of the value of the work.
���� Any money heretofore or
hereafter withheld from contract payments as provided for herein shall be paid
by the authority to any contractor entitled thereto who shall deposit under
terms of an escrow agreement, in a banking institution located in this State
and approved by the authority, negotiable bonds, acceptable to the authority,
issued by the State or any political subdivision thereof, the bonds having
value equal to the amount of money to be paid to any such contractor.� For
purposes of this section, value shall mean par value or market value, whichever
is lower.
����
b.� Notwithstanding any
law, rule, or regulation to the contrary, the authority shall not withhold a
partial payment otherwise due pursuant to subsection a. of this section solely
on the basis of a de minimis clerical, administrative, or technical error,
provided that:
����
(1)� the work associated
with the payment has been satisfactorily performed in accordance with the
contract;
����
(2)� the error does not
affect the cost, scope, safety, insurance coverage, bonding, or eligibility of
the work;
����
(3)� the error is not
related to fraud, misrepresentation, or a material contractual requirement; and
����
(4)� the payment is not the
final payment due pursuant to the contract.
����
The authority shall provide
written notice to the contractor identifying the clerical, administrative, or
technical error and shall require correction of such error within a reasonable
cure period, not to exceed 10 business days.� Failure to cure the error within
the specified time period may result in the withholding of subsequent payments by
the authority or any other remedies available to the authority pursuant to the
contract or law.
����
For the purposes of this
subsection, �clerical, administrative, or technical error� means an
unintentional error, omission, defect, or minor mathematical discrepancy in a
payment application or supporting documentation that does not materially affect
the amount due, the contractor�s performance of the contract, or the authority�s
ability to lawfully make the payment.
(cf: P.L.2007, c.180, s.1)
���� 7.� Section 2 of P.L.1979,
c.464 (C.40A:11-16.3) is amended to read as follows:
���� 2. a. With respect to any
contract entered into by a contracting unit pursuant to section 1 of P.L.1979,
c.464 (C.40A:11-16.2) for which the contractor shall agree to the withholding
of payments pursuant to P.L.1979, c.152 (C.40A:11-16.1),
[
2%
]
2 percent
of the amount due on each partial payment shall be withheld by the contracting
unit pending completion of the contract.
���� b.��� Upon acceptance of the
work performed pursuant to the contract for which the contractor has agreed to
the withholding of payments pursuant to subsection a. of this section, all
amounts being withheld by the contracting unit shall be released and paid in full
to the contractor within 45 days of the final acceptance date agreed upon by
the contractor and the contracting unit, without further withholding of any
amounts for any purpose whatsoever, provided that the contract has been
completed as indicated.� If the contracting unit requires maintenance security
after acceptance of the work performed pursuant to the contract, such security
shall be obtained in the form of a maintenance bond.� The maintenance bond
shall be no longer than two years and shall be no more than
[
100%
]
100
percent
of the project costs.
����
c.� Notwithstanding any law,
rule, or regulation to the contrary, a contracting unit shall not withhold a partial
payment otherwise due pursuant to this section solely on the basis of a de
minimis clerical, administrative, or technical error, provided that:
����
(1) �the work associated
with the payment has been satisfactorily performed in accordance with the
contract;
����
(2) �the error does not
affect the cost, scope, safety, insurance coverage, bonding, or eligibility of
the work;
����
(3) �the error is not
related to fraud, misrepresentation, or a material contractual requirement; and
����
(4) �the payment is not the
final payment due pursuant to the contract.
����
The contracting unit shall
provide written notice to the contractor identifying the clerical,
administrative, or technical error and shall require correction of such error within
a reasonable cure period, not to exceed 10 business days. �Failure to cure the
error within the specified time period may result in the withholding of
subsequent payments by the contracting unit or any other remedies available to
the contracting unit pursuant to the contract or law.
����
For the purposes of this
subsection, �clerical, administrative, or technical error� means an
unintentional error, omission, defect, or minor mathematical discrepancy in a
payment application or supporting documentation that does not materially affect
the amount due, the contractor�s performance of the contract, or the contracting
unit�s ability to lawfully make the payment.
(cf: P.L.1999, c.440, s.26)
���� 8.� (New section)
Notwithstanding any law, rule, or regulation to the contrary, with respect to
any contract entered into by a State agency for which the contract contains a
provision for the withholding of payments, a State agency shall not withhold a
partial payment otherwise due pursuant to the contract solely on the basis of a
de minimis clerical, administrative, or technical error, provided that:
���� (1)� the work associated with
the payment has been satisfactorily performed in accordance with the contract;
���� (2)� the error does not affect
the cost, scope, safety, insurance coverage, bonding, or eligibility of the
work;
���� (3)� the error is not related
to fraud, misrepresentation, or a material contractual requirement; and
���� (4)� the payment is not the
final payment due pursuant to the contract.
���� The State agency shall provide
written notice to the contractor identifying the clerical, administrative, or
technical error and shall require correction of such error within a reasonable
cure period, not to exceed 10 business days.� Failure to cure the error within
the specified time period may result in the withholding of subsequent payments
by the State agency or any other remedies available to the State agency
pursuant to the contract or law.
���� As used in this section:
���� �Clerical, administrative, or
technical error� means an unintentional error, omission, defect, or minor
mathematical discrepancy in a payment application or supporting documentation
that does not materially affect the amount due, the contractor�s performance of
the contract, or the State agency�s ability to lawfully make the payment.
���� �State agency� means the same
as that term is defined in section 2 of P.L.1971, c.182 (C.52:13D-13).
���� 9. �This act shall take effect
immediately.
STATEMENT
���� This bill prohibits the
withholding of partial payments to contractors by public entities for de
minimis clerical, administrative, or technical errors.
���� This bill promotes efficiency
in public contracting by prohibiting public and governmental entities from
withholding partial payments to contractors solely because of de minimis
clerical, administrative, or technical errors in payment applications or
supporting documentation. �Minor paperwork errors can create unnecessary
payment delays, disrupt project timelines, and increase administrative burdens
for both contractors and public and governmental entities. �This bill is
intended to streamline the payment process for public construction projects
while preserving the ability of public and governmental entities to withhold
payments for material issues affecting contract compliance, project safety,
fraud, or legal eligibility for payment.
���� Under the bill, a public or
governmental entity, including but not limited to a board of education, a State
college, the Department of Transportation, the board of county commissioners,
the New Jersey Turnpike Authority, and certain contracting units, entering into
a contract pursuant to current law will not be permitted to withhold a partial
payment otherwise due pursuant to the law solely on the basis of a de minimis
clerical, administrative, or technical error, provided that: the work
associated with the payment has been satisfactorily performed in accordance
with the contract; the error does not affect the cost, scope, safety, insurance
coverage, bonding, or eligibility of the work; the error is not related to
fraud, misrepresentation, or a material contractual requirement; and the
payment is not the final payment due pursuant to the contract.
���� The bill also provides that,
with respect to any contract entered into by a State agency for which the contract
contains a provision for the withholding of payments, a State agency will not
be permitted to withhold a partial payment otherwise due pursuant to the
contract solely on the basis of a de minimis clerical, administrative, or
technical error, provided that: the work associated with the payment has been
satisfactorily performed in accordance with the contract; the error does not
affect the cost, scope, safety, insurance coverage, bonding, or eligibility of
the work; the error is not related to fraud, misrepresentation, or a material
contractual requirement; and the payment is not the final payment due pursuant
to the contract.
���� The public or governmental entity,
as well as a State agency, is required to provide written notice to the
contractor identifying any clerical, administrative, or technical errors.� Upon
notice, the entity or agency will require the contractor to correct such errors
within a reasonable cure period, not to exceed 10 business days.� Failure to
cure an error within the specified time period may result in the withholding of
subsequent payments by the entity or agency or any other remedies available to
the entity or agency pursuant to the contract or law.