§ 8 — Contracts

§ 8. Contracts. 1. Any contract let by the corporation for the\nconstruction of a health facility shall be publicly let to the lowest\nresponsible bidder in the manner provided by, and in conformity with,\nthe provisions of article five-a of the general municipal law, except\nthat where the cost of such a contract does not exceed ten thousand\ndollars such contract may be entered into without public letting;\nprovided, however, that if the corporation determines that in a special\ncase or cases it would not be in the public interest to comply with the\nterms of this section and the board of estimate of the city, by\nresolution, rule or regulation adopted by the vote of two-thirds of the\nwhole number of votes authorized to be cast by all of the members of the\nboard of estimate, concurs in such determination, then such a contract\nmay be entered into by the corporation without public letting as\nauthorized by the said resolution, rules or regulations. Notwithstanding\nthe provisions of this subdivision one, if the corporation determines\nthat circumstances exist whereby it would be detrimental to or\nimpracticable for the corporation to comply with the public letting\nrequirements of this section concerning a change order then such a\nchange order may be let by the corporation without public letting. For\nthe purposes of article five-a of the general municipal law, the\ncorporation shall be deemed to be a "political subdivision".\n 2. The corporation may make rules and regulations governing the\nqualifications of bidders entering into such a contract where the cost\nof such a contract exceeds twenty-five thousand dollars. The bidding may\nbe restricted to those who shall have qualified prior to the receipt of\nbids according to standards fixed by the corporation; provided, however,\nthat notice or notices for the submission of qualifications shall be\npublished in the official publication of the city and in an appropriate\ntrade journal published in the city, or if no such trade journal exists,\nin a newspaper with a general circulation in the city, at least once,\nnot less than ten days prior to the date fixed for the filing of\nqualifications.\n 3. The corporation, in its discretion, may assign the separate\ncontracts awarded pursuant to section one hundred one of the general\nmunicipal law to the general contractor for supervision. Each contract\nfor the construction of a health facility may include a provision that\nthe architect who designed the facility, or the architect or engineer\nretained or employed specifically for the purpose of supervision, shall\nsupervise the work to be performed through to completion and shall see\nto it that the materials furnished and the work performed are in\naccordance with the drawings, plans, specifications and contracts\ntherefor.\n 4. All bids received for the letting of any contract pursuant to this\nsection shall be submitted to the corporation and shall be publicly\nopened and read by the corporation. Nothing in this section shall be\nconstrued to limit the power of the corporation to do any construction\nby or through its own officers, agents or employees.\n 5. (a) In addition to any other bond or bonds that may be required by\nlaw for the completion of a health facility, or in the absence of any\nsuch requirement, the corporation shall require, prior to the approval\nof any contract or agreement providing for the construction of a health\nfacility, that the general contractor furnish a bond guaranteeing prompt\npayment of moneys due to all persons furnishing labor or materials to or\nfor the general contractor or to his subcontractors in the prosecution\nof the entire work provided for in such agreement. A copy of such\npayment bond shall be filed in the offices of the corporation and shall\nbe open to public inspection.\n (b) Every person who has furnished labor or material, to or for the\ngeneral contractor or to a sub-contractor in the prosecution of the work\nprovided for in the contract or other agreement of the corporation with\nthe general contractor and who has not been paid in full therefor before\nthe expiration of a period of ninety days after the day on which the\nlast of the labor was performed or material was furnished by him for\nwhich the claim is made, shall have the right to sue on such payment\nbond in his own name for the amount, or the balance thereof, unpaid at\nthe time of commencement of the action; provided, however, that a person\nhaving a direct contractual relationship with a sub-contractor of the\ngeneral contractor furnishing the payment bond but no contractual\nrelationship express or implied with such general contractor shall not\nhave a right of action upon the bond unless he shall have given written\nnotice to such general contractor within ninety days from the date on\nwhich the last of the labor was performed or the last of the material\nwas furnished, for which his claim is made, stating with substantial\naccuracy the amount claimed and the name of the party to whom the\nmaterial was furnished or for whom the labor was performed. The notice\nshall be served by delivering the same personally to the general\ncontractor or by mailing the same by registered mail, postage pre-paid,\nin an envelope addressed to the general contractor at any place where he\nmaintains an office or conducts his business or at his residence.\n 6. Any contracts for design, construction, services and materials\nentered into by the corporation pursuant to this act shall be deemed\nstate contracts within the meaning of that term as set forth in article\nfifteen-A of the executive law, and the corporation shall be deemed, for\nthe purposes of this act, a contracting agency as that term is used in\narticle fifteen-A of the executive law.\n * 7. The corporation shall have the authority to use the same measures\nto enhance mentoring opportunities for small businesses as are available\nto the city of New York pursuant to section thirteen hundred nine of the\nNew York city charter. Upon the written consent of the corporation, the\ncorporation shall be subject to the rules and the goal authorized under\nsubdivision g of section thirteen hundred nine of such charter with\nrespect to a mentoring program established pursuant to this subdivision,\nprovided that after execution of such written consent, a duly authorized\nofficer of the corporation and the city, acting by the mayor, may enter\ninto a memorandum of understanding relating to mentoring opportunities\nauthorized under this subdivision.\n * NB Effective February 22, 2024\n