Allows certain third parties to bring suit against public works project bidders that violate certain laws.

S4141

SENATE, No. 4141

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 11, 2026

Sponsored by:

Senator� PAUL A. SARLO

District 36 (Bergen and Passaic)

SYNOPSIS

���� Allows certain third parties to bring suit against
public works project bidders that violate certain laws.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning certain public work projects and amending
P.L.1996, c.71.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 1 of P.L.1996,
c.71 (C.34:11-56.47) is amended to read as follows:

���� 1.��� a.� Any person who
submits a bid directly to a public body for a contract for any public work
subject to the provisions of the "New Jersey Prevailing Wage Act,"
P.L.1963, c.150 (C.34:11-56.25 et seq.) and is not awarded the contract and
whose bid is the lowest bid other than the bid accepted by the public body or,
if, pursuant to law, the contract is awarded on the basis of factors other than
or in addition to the lowest bid, whose bid is the highest in rank other than
the bid accepted by the public body (hereinafter referred to in this section as
the "plaintiff") may bring an action for damages in a court of
competent jurisdiction against the contractor who was directly awarded the
contract by the public body or any subcontractor of that contractor
(hereinafter referred to in this section as the "defendant") alleging
that the defendant has, in connection with work performed pursuant to the
contract, violated the provisions of P.L.1963, c.150 (C.34:11-56.25 et seq.) or
failed to pay any contribution, tax, assessment or benefit required by any
other applicable law.� If there is more than one losing bidder, a bidder with a
higher bid than the second lowest bidder or lower rank than the second highest
rank, if, pursuant to law, the contract is awarded on the basis of factors
other than or in addition to the lowest bid, may bring the action if that
bidder gives written notice of his intention to bring an action, sent by
first-class mail and certified mail, return receipt requested, to every other
losing bidder whose bid was lower than his or whose bid was higher in rank than
his and none of the bidders notified files an action within 30 days following
the date of their receipt of notice.� The written notice of intention to bring
an action must contain the following: (1) a statement of the specific
violations or failures to pay allegedly committed, which shall not preclude, in
the course of the action, consideration of other violations or failures to pay
as may be revealed in the course of discovery, (2) a statement that the action
is to be filed pursuant to
[
this
act
]

P.L.1996,
c.71 (C.34:11-56.47)
, and (3) a statement that the recipient of the notice
may have the right to file an action and will be precluded from doing so if he
does not file an action within 30 days of his receipt of the notice.� If no
other losing bidder so notified files an action within 30 days of his receipt
of the notice, the losing bidder who sent the notice shall file an action
pursuant to
[
this
act
]

P.L.1996,
c.71 (C.34:11-56.47)
within 15 days of the last day any of the recipients
of the notice could have filed an action.� If more than one bidder files an
action, all actions other than that filed by the bidder whose bid is the lowest
of the bidders who filed actions, or, if, pursuant to law, the contract is
awarded on the basis of factors other than or in addition to the lowest bid,
whose bid is the highest in rank of the bidders who filed actions, shall be
dismissed.

���� b.��� Upon a finding by the
court that the plaintiff was a responsible bidder for the contract and a
finding that one or more defendants violated the provisions of P.L.1963, c.150
(C.34:11-56.25 et seq.) or failed to pay any contribution, tax, assessment or
benefit required by any other applicable law in connection with work performed
pursuant to the contract, and that the plaintiff submitted a bid for the
contract which was less than the sum total of the bid accepted by the public
body plus any additional amount that the defendant or defendants would have
paid during the term of the contract to be in full compliance with P.L.1963,
c.150 (C.34:11-56.25 et seq.) and other applicable laws in connection with the
contract, the court shall order the defendant or defendants to pay to the
plaintiff the entire amount of damages sustained plus costs and reasonable
attorney's fees or, if the court finds the noncompliance to be intentional,
three times the amount of damages sustained plus costs and reasonable
attorney's fees, except that the court shall order no payment to the plaintiff
if the court finds that the violation or failure to pay was caused by minor
record keeping mistakes or minor computational errors or by other minor
mistakes.� The occurrence of more than two violations or failures to pay shall
lead to the rebuttable presumption that the violation or failure to pay at
issue is not minor.� If there are two or more defendants, the court shall
allocate the payments for damages sustained and attorney's fees among the
defendants in a reasonable manner.� Nothing in this section shall be construed
as requiring payments to a plaintiff by any contractor or subcontractor who has
not violated the provisions of P.L.1963, c.150 (C.34:11-56.25 et seq.) or
failed to pay any contribution, tax, assessment or benefit required by any
other applicable law in connection with work performed pursuant to the
contract.� A plaintiff may designate an agent or representative to maintain the
action if the violation or failure to pay has an adverse effect on the agent or
representative or, if the agent or representative is an organization or
association, on any member of the organization or association.� If the
plaintiff prevails, the agent or representative shall be entitled to
reimbursement for costs and reasonable attorney's fees of the agent or
representative but not to a financial interest in the damages awarded.

���� c.���� For the purposes of
this section, the damages sustained by a plaintiff shall include the
plaintiff's costs of preparing and submitting the bid and may, if sought by the
plaintiff, include profits that the court determines the plaintiff would have
made if the plaintiff had been awarded the contract and complied with P.L.1963,
c.150 (C.34:11-56.25 et seq.) and other applicable laws.

���� d.��� If the court determines
that the defendant did not, in connection with work performed pursuant to the
contract, violate the provisions of P.L.1963, c.150 (C.34:11-56.25 et seq.) or
fail to pay any contribution, tax, assessment or benefit required by other
applicable law, the court shall order the plaintiff to pay the costs and
reasonable attorney's fees of the defendant.� Nothing herein shall preclude a
defendant who is found to have committed minor record keeping mistakes, minor
computational errors or other minor mistakes from being awarded relief pursuant
to section 1 of P.L.1988, c.46 (C.2A:15-59.1).

���� e.����
(1)� Notwithstanding
any law to the contrary, a third party may bring suit on behalf of a person who
is eligible to file suit pursuant to subsection a. of this section.�

����
(2)�� Pursuant to
subsection b. of this section, the third party shall be entitled to damages or
if the court finds the noncompliance to be intentional, three times the amount
of damages, sustained by the third party, and the person on whose behalf the
suit is filed shall be entitled damages or if the court finds the noncompliance
to be intentional, three times the amount of damages, sustained by the person.�
The third party shall be entitled to costs and reasonable attorney's fees.

����
f.
���� As used in this
section:

���� "Person" means any
individual, corporation, company, partnership, firm, association or business;

���� "Contractor" means a
person who is directly awarded a contract for a public work by a public body;
[
and
]

���� "Subcontractor"
means any subcontractor or lower tier subcontractor of a contractor
; and

����
�Third party� means a
union, contractor, subcontractor, or other organization
.

(cf:� P.L.1996, c.71, s.1)

���� 2.��� This act shall take
effect on the 30th day next following enactment.

STATEMENT

���� This bill allows certain third
parties to bring suit against public works project bidders that violate the
provisions of the �New Jersey Prevailing Wage Act� or certain other laws.

���� Under current law, a person
who submits a bid directly to a public body for a contract for any public work
subject to the provisions of the "New Jersey Prevailing Wage Act,"
and is not awarded the contract and whose bid is the lowest bid or highest
ranked bid other than the bid accepted by the public body may bring an action
for damages in a court of competent jurisdiction against the contractor who was
directly awarded the contract by the public body alleging a violation of
applicable law.� Upon a finding by the court that the plaintiff was a
responsible bidder for the contract and a finding that one or more defendant
contractors violated applicable law, the court is required to order the
defendant or defendants to pay to the plaintiff the entire amount of damages
sustained plus costs and reasonable attorney's fees or, if the court finds the
noncompliance to be intentional, three times the amount of damages sustained
plus costs and reasonable attorney's fees.

���� The bill allows third parties,
including unions, contractors, subcontractors, and other organizations, to file
suit on behalf of a person who is eligible to file suit pursuant to current
law.� The bill provides that the third party is entitled to damages or if the
court finds the noncompliance to be intentional, three times the amount of
damages, sustained by the third party, and the person on whose behalf the suit
is filed is entitled damages or if the court finds the noncompliance to be
intentional, three times the amount of damages, sustained by the person.� The
bill provides that the third party is entitled to costs and reasonable
attorney's fees.