New Jersey § 2a:30a-2

§ 2a:30a-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%. 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.