Surety bonds • New Jersey
New Jersey Public Works Bonds (N.J.S.A. 2A:44-143): Requirements and Deadlines
Under N.J.S.A. 2A:44-143, contracts for public buildings and public works paid for by the State, a contracting unit, or a school district require a payment and performance bond. The payment bond equals 100% of the contract price, and bonds may be waived on local contracts up to $100,000 and state contracts up to $200,000.
This guide covers when bonds are required, waivers, who is protected, claim deadlines, and cost. Blake Insurance Group is an independent agency and does not give legal advice; a licensed agent can help contractors set up bonding.
Request a New Jersey contract bond quote
Tell us about the project, the contract amount, and the public owner, and a licensed agent will follow up. Submitting the form does not bind coverage.
If the form does not load, call 888-387-3687, Monday through Friday, 9:00 to 5:00, or email info@blakeinsurancegroup.com.
Prefer to quote online yourself?
Get a surety bond quote online, without waiting for a call back. Many license and permit bonds can be issued the same day.
Get a surety bond quote through Propeller →License, permit, contract, and commercial bonds through our Propeller portal.
Sponsored. Each link opens the partner’s website in a new tab, where its terms and privacy policy apply. Blake Insurance Group may be compensated if you buy.
When bonds are required
Under N.J.S.A. 2A:44-143, the contracting body must require a payment and performance bond on contracts for public buildings or other public works paid for by the State, a contracting unit, or a school district. The bond amount may be set at up to 100% of the amount bid based on risk, and under N.J.S.A. 2A:44-144 the payment bond equals 100% of the contract price.
Waivers for smaller contracts
| Public owner | Bond may be waived on contracts up to |
|---|---|
| State | $200,000 |
| Contracting units and school districts | $100,000 |
Source: N.J.S.A. 2A:44-143.
Who the bonds protect
The payment bond benefits subcontractors and material suppliers under contract with the prime contractor or a subcontractor; only the named obligee and those beneficiaries can claim against the surety (N.J.S.A. 2A:44-143). See our payment bond and performance bond guides.
Payment bond claim deadlines
- Notice before work. A beneficiary without a direct contract with the contractor should give the contractor written notice before starting work; otherwise its rights run only from when notice is given.
- Statement of amount due must be furnished to the sureties within one year after the beneficiary’s last work or delivery.
- Suit may not be brought until 90 days after the statement is provided, and in no event later than one year after the last work or delivery.
Source: N.J.S.A. 2A:44-145. Deadlines are strict, so claimants should get legal advice early.
How much New Jersey contract bonds cost
Payment and performance bonds are usually priced together, commonly about 0.5% to 3% of the contract amount based on the contractor’s finances and experience (NASBP).
New Jersey public works bond FAQs
When are payment and performance bonds required in New Jersey?
On public buildings and public works paid for by the State, contracting units, or school districts, unless waived for smaller contracts.
Can New Jersey public works bonds be waived?
Yes, on local contracts up to $100,000 and state contracts up to $200,000.
How long do I have to sue on a New Jersey payment bond?
No later than one year after your last work or delivery, and not until 90 days after you provide a statement of the amount due.
Related guides
- New Jersey surety bonds
- Payment bonds
- Performance bonds
- New York public works payment bond
- Surety bonds
- Surety bond cost
- Surety bond cost calculator
- Buy a surety bond online
- South Dakota public works bond
- West Virginia public works bond
- New Mexico public works bond
- Nebraska public works bond
- Kansas public works bond
- Iowa public works bond
- Oklahoma public works bond
- South Carolina public works bond
- Alabama public works bond
- Tennessee public works bond
- Washington public works bond
- Michigan public works bond
- Pennsylvania public works bond
Important information
Compensation. The link in the partner quote box near the top of this page is sponsored, and Blake Insurance Group may be paid if you make a purchase. Sponsored placement does not affect the other information on this page.
Independent agency. Blake Insurance Group LLC is an independent insurance agency. Licensed insurance producer NPN 16944666. Licensed states: AZ, AL, TX, CA, NY, OH, FL, NC, VA, GA, OK, NM, IA, KS, MI, NE, SC, SD, WV, IL, NJ, PA, TN, and WA. Which insurance companies we can quote depends on our current appointments, the product, and your state. Mentioning a company on this page does not mean we represent it.
Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, the surety, your credit, the bond type, and underwriting.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Tell us about your New Jersey public project, and a licensed agent will help you set up bonding.
