§ 458. Letting of construction contracts.
1.Any contract let by the\nfund or by any letting agency on behalf of the fund for the\nconstruction, reconstruction, rehabilitation or improvement of a\ncombined occupancy structure or of the school portion thereof, shall be\nin conformity with the provisions of section one hundred one of the\ngeneral municipal law.\n 2. Except as otherwise provided in section two hundred twenty-two of\nthe labor law, every contract, lease or other agreement entered into by\nor on behalf of the fund for the acquisition, lease, construction,\nreconstruction, rehabilitation or improvement of the school portion of\nthe work in any combined occupancy structure shall contain a provision\nthat, when the entire cost of any such contemplated construction,\nreconstruct
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§ 458. Letting of construction contracts. 1. Any contract let by the\nfund or by any letting agency on behalf of the fund for the\nconstruction, reconstruction, rehabilitation or improvement of a\ncombined occupancy structure or of the school portion thereof, shall be\nin conformity with the provisions of section one hundred one of the\ngeneral municipal law.\n 2. Except as otherwise provided in section two hundred twenty-two of\nthe labor law, every contract, lease or other agreement entered into by\nor on behalf of the fund for the acquisition, lease, construction,\nreconstruction, rehabilitation or improvement of the school portion of\nthe work in any combined occupancy structure shall contain a provision\nthat, when the entire cost of any such contemplated construction,\nreconstruction, rehabilitation or improvement for the school portion of\nthe work shall exceed three million dollars in the counties of the\nBronx, Kings, New York, Queens, and Richmond; one million five hundred\nthousand dollars in the counties of Nassau, Suffolk and Westchester; and\nfive hundred thousand dollars in all other counties within the state,\nseparate specifications shall be prepared for the following three\nsubdivisions of the work on the school portion to be performed:\n a. Plumbing and gas fitting;\n b. Steam heating, hot water heating, ventilating and air conditioning\napparatus; and\n c. Electric wiring and standard illuminating fixtures.\n Such specifications shall be drawn so as to permit the letting of\nseparate and independent contracts for each of the above three\nsubdivisions of work. Within the above three subdivisions of work, any\nequipment, apparatus and/or installations which shall be designed to\nservice the entire combined occupancy structure shall be included within\nthe school portion of the work or let as separate and independent\ncontracts even if physically located within the non-school portion of\nthe work. Except as otherwise provided by the public housing law, the\nprovisions of which shall apply when the developer is the New York city\nhousing authority, every developer or general contractor undertaking the\nconstruction, reconstruction, rehabilitation or improvement of any such\ncombined occupancy structure pursuant to or in furtherance of the\nprovisions of this article shall let separate contracts to the lowest\nresponsible bidder for the three subdivisions of the above specified\nwork to persons, firms or corporations approved by the chairman of the\nfund as being qualified, responsible and reliable bidders engaged in\nthese classes of work. All such qualified bidders engaged in the above\nspecified work shall be entitled to bid and to receive, upon request, a\ncopy of the plans and specifications. All such bids shall be submitted\nto the fund and shall be opened publicly at a stated time and place.\n 2-a. Each bidder on a public work contract, where the preparation of\nseparate specifications is not required, shall submit with its bid a\nseparate sealed list that names each subcontractor that the bidder will\nuse to perform work on the contract, and the agreed-upon amount to be\npaid to each, for: a. plumbing and gas fitting, b. steam heating, hot\nwater heating, ventilating and air conditioning apparatus and c.\nelectric wiring and standard illuminating fixtures. After the low bid is\nannounced, the sealed list of subcontractors submitted with such low bid\nshall be opened and the names of such subcontractors shall be announced,\nand thereafter any change of subcontractor or agreed-upon amount to be\npaid to each shall require the approval of the public owner, upon a\nshowing presented to the public owner of legitimate construction need\nfor such change, which shall be open to public inspection. Legitimate\nconstruction need shall include, but not be limited to, a change in\nproject specifications, a change in construction material costs, a\nchange to subcontractor status as determined pursuant to paragraph (e)\nof subdivision two of section two hundred twenty-two of the labor law,\nor the subcontractor has become otherwise unwilling, unable or\nunavailable to perform the subcontract. The sealed lists of\nsubcontractors submitted by all other bidders shall be returned to them\nunopened after the contract award.\n 3. a. In addition to other bond or bonds, if any, required by law for\nthe completion of the school portion of a combined occupancy structure,\nor in the absence of any such requirement, the fund shall nevertheless\nrequire, prior to the approval of any lease or other agreement providing\nfor the construction, reconstruction, rehabilitation or improvement of\nany combined occupancy structure, that the developer, if other than the\nNew York city housing authority, or general contractor, furnish a bond\nguaranteeing prompt payment of moneys due to all persons furnishing\nlabor or materials to or for the person furnishing said bond or to his\nsubcontractors in the prosecution of the entire work provided for in\nsuch lease or other agreement. Whenever the developer is the New York\ncity housing authority, it shall require each of its contractors to\nfurnish such bonds to said authority and fund with respect to the work\nto be performed and materials supplied by such contractor, and no\nseparate or other payment bond shall be required to be furnished to the\nfund. In those instances where the developer or general contractor is an\nagency of the state or a public-benefit corporation created by an act of\nthe state legislature and in instances where said developer or general\ncontractor or the guarantor of payment of the construction costs of the\nnon-school portion of the combined "occupancy structure" is a public\nutility corporation or a bank, trust company or savings bank as defined\nin section two of the banking law, or a national bank having its office\nand principal place of business in this state, or a subsidiary of such a\nbank or trust company of which at least eighty (80%) percent of whose\nstock is owned by it, the said developer or general contractor shall\nonly be required to furnish said payment bond with respect to the school\nportion of the combined occupancy structure. In such instances, the said\npayment bond shall not be required by the fund with respect to the\nnon-school portion of the combined occupancy structure, but, in lieu\nthereof, such fund shall require said agency, public benefit\ncorporation, public utility corporation or banking institution, as the\ncase may be to guarantee payment of all construction costs with respect\nto the non-school portion of the combined occupancy structure.\n b. A copy of such payment bond shall be kept in the office of the\nchairman of the fund and a copy shall also be kept in the office of the\nboard of education; such copies shall be open to public inspection.\n c. Every person who has furnished labor or material, to or for the\ndeveloper or contractor furnishing such payment bond or to his or her\nsubcontractors in the prosecution of the work provided for in the lease\nor other agreement for which said bond is furnished and who has not been\npaid in full therefor before the expiration of a period of ninety days\nafter the day on which the last of the labor was performed or material\nwas furnished by him or her for which the claim is made, shall have the\nright to sue on such payment bond in his or her own name for the amount,\nor the balance thereof, unpaid at the time of commencement of the\naction; provided, however, that a person having a direct contractual\nrelationship with a subcontractor of the developer or contractor\nfurnishing the payment bond but no contractual relationship express or\nimplied with such developer or contractor shall not have a right of\naction upon the bond unless he or she shall have given written notice to\nsuch developer or contractor furnishing the bond within ninety days from\nthe date on which the last of the labor was performed or the last of the\nmaterial was furnished, for which his or her claim is made, stating with\nsubstantial accuracy the amount claimed and the name of the party to\nwhom the material was furnished or for whom the labor was performed. The\nnotice shall be served by delivering the same personally to the\ndeveloper or contractor furnishing said bond or by mailing the same by\nregistered mail, postage prepaid, in an envelope addressed to such\ndeveloper or contractor at any place where he maintains an office or\nconducts his or her business or at his or her residence.\n