Legislation
SECTION 376
Letting of construction contracts
Education (EDN) CHAPTER 16, TITLE 1, ARTICLE 8-A
§ 376. Letting of construction contracts. 1. After May first, nineteen
hundred sixty-two, the fund as agent for the state university shall
construct, acquire, reconstruct, rehabilitate and improve, or cause to
be constructed, acquired, reconstructed, rehabilitated and improved, all
academic buildings, dormitories and other facilities to be constructed,
acquired, reconstructed, rehabilitated or improved at state-operated
institutions or statutory or contract colleges under the jurisdiction of
the state university, provided that legislation or appropriations
authorizing the same (i) have been requested by the state university
trustees, (ii) have been recommended by the governor in a budget bill
relating to a state fiscal year commencing on or after April first,
nineteen hundred sixty-two which specifies the facilities to be
constructed, acquired, reconstructed, rehabilitated or improved and the
total estimated cost for each such facility, and (iii) have been
approved by the legislature for such state fiscal year. With respect to
state fiscal years commencing on or after April first, nineteen hundred
sixty-three, the budget bill referred to in the preceding sentence shall
include in addition to the items stated the date when it is desired that
the construction, acquisition, reconstruction, rehabilitation or
improvement of each facility referred to therein be completed, and all
work for such purposes shall be performed in such manner as to assure
completion, so far as practicable, by the dates specified.
2. The fund may construct, acquire, reconstruct, rehabilitate and
improve such facilities, other than dormitories, by its own employees,
by agreement with a state retirement system or any state agency
authorized to perform such work, or by contract awarded pursuant to
subdivision eight of this section.
3. The fund may construct, acquire, reconstruct, rehabilitate and
improve dormitories only by agreement with the dormitory authority
established under title four of the public authorities law, except that
if the dormitory authority indicates its unwillingness to enter into
such an agreement with the fund for such purpose, the fund may
construct, acquire, reconstruct, rehabilitate and improve such
dormitories by its own employees, by agreement with a state retirement
system or any state agency (other than the dormitory authority)
authorized to perform such work, or by contract awarded pursuant to
subdivision eight of this section, subject, however, to the rights of
holders of outstanding bonds and notes of the dormitory authority with
respect to existing dormitories.
4. In the event that the dormitory authority enters into an agreement
with the fund for construction, acquisition, reconstruction,
rehabilitation or improvement of a facility for the state university, it
shall perform the work required or cause the work required to be
performed in accordance with the terms of such agreement either by its
own employees or by contract awarded pursuant to the provisions of title
four of the public authorities law. In the event any state agency other
than the dormitory authority enters into an agreement with the fund for
such work it shall perform the same either by its own employees or by
contract awarded pursuant to subdivision eight of this section.
5. No contract for the construction, acquisition, reconstruction,
rehabilitation or improvement of academic buildings, dormitories and
other facilities shall be awarded by any letting agency unless the state
university trustees shall have approved the architectural concept of the
facility to be constructed, acquired, reconstructed, rehabilitated or
improved and unless the fund shall have approved the proposed terms of
such contract, including the detailed plans and specifications for such
facility.
6. Each contract for the construction, acquisition, reconstruction,
rehabilitation or improvement of academic buildings, dormitories and
other facilities shall include a provision that the architect who
designed the facility, or an architect or engineer, or, for projects
authorized by section three hundred seventy-two-a of this article a
construction manager or other consultant, retained specifically for the
purpose of supervision, shall supervise the work to be performed through
to completion and shall see to it that the materials furnished and the
work performed are in accordance with the drawings, plans,
specifications and contract therefor.
7. Any letting agency may in its discretion award one contract for all
the work to be performed in construction, acquisition, reconstruction,
rehabilitation or improvement without separate and independent bidding
or letting on subdivisions of work to be performed.
8. * All contracts which are to be awarded pursuant to this
subdivision shall be awarded by public letting in accordance with the
following provisions, notwithstanding any contrary provision of section
one hundred thirty-five, one hundred thirty-six, one hundred thirty-nine
or one hundred forty of the state finance law or any other law,
provided, however, that where the estimated expense of any contract
which may be awarded pursuant to this subdivision is less than two
hundred fifty thousand dollars, a performance bond and a bond for the
payment of labor and material may, in the discretion of the fund, not be
required, and except that in the discretion of the fund, a contract may
be entered into for such purposes without public letting where the
estimated expense thereof is less than twenty thousand dollars, or where
in the judgment of the fund an emergency condition exists as a result of
damage to an existing academic building, dormitory or other facility
which has been caused by an act of God, fire or other casualty, or any
other unanticipated, sudden and unexpected occurrence, that has resulted
in damage to or a malfunction in an existing academic building,
dormitory or other facility and involves a pressing necessity for
immediate repair, reconstruction or maintenance in order to permit the
safe continuation of the use or function of such facility, or to protect
the facility or the life, health or safety of any person, and the nature
of the work is such that in the judgment of the fund it would be
impractical and against the public interest to have public letting;
provided, however, that the fund, prior to awarding a contract hereunder
because of an emergency condition notify the comptroller of its intent
to award such a contract:
* NB Effective until June 30, 2026
* All contracts which are to be awarded pursuant to this subdivision
shall be awarded by public letting in accordance with the following
provisions, notwithstanding any contrary provision of section one
hundred thirty-five, one hundred thirty-six, one hundred thirty-nine or
one hundred forty of the state finance law, provided, however, that
where the estimated expense of any contract which may be awarded
pursuant to this subdivision is less than fifty thousand dollars, a
performance bond and a bond for the payment of labor and material may,
in the discretion of the fund, not be required, and except that in the
discretion of the fund, a contract may be entered into for such purposes
without public letting where the estimated expense thereof is less than
twenty thousand dollars, or where in the judgment of the fund an
emergency condition exists as a result of damage to an existing academic
building, dormitory or other facility which has been caused by an act of
God, fire or other casualty, or any other unanticipated, sudden and
unexpected occurrence, that has resulted in damage to or a malfunction
in an existing academic building, dormitory or other facility and
involves a pressing necessity for immediate repair, reconstruction or
maintenance in order to permit the safe continuation of the use or
function of such facility, or to protect the facility or the life,
health or safety of any person, and the nature of the work is such that
in the judgment of the fund it would be impractical and against the
public interest to have public letting; provided, however, that the
fund, prior to awarding a contract hereunder because of an emergency
condition notify the comptroller of its intent to award such a contract:
* NB Effective June 30, 2026
a. If contracts are to be publicly let, the letting agency shall
advertise the invitation to bid in a newspaper published in the city of
Albany and in such other newspapers as will be most likely in its
opinion to give adequate notice to contractors of the work required and
of the invitation to bid provided, however, that where the estimated
expense of any contract which may be awarded pursuant to this
subdivision is less than fifty thousand dollars, the letting agency may
advertise the invitation to bid solely through the procurement
opportunities newsletter published pursuant to section one hundred
forty-two of the economic development law. The invitation to bid shall
contain such information as the letting agency shall deem appropriate
and a statement of the time and place where all bids received pursuant
to such notice will be publicly opened and read.
b. The letting agency shall not award any contract after public
bidding except to the lowest bidder who in its opinion is qualified to
perform the work required and is responsible and reliable. The letting
agency may, however, reject any or all bids, again advertise for bids,
or waive any informality in a bid if it believes that the public
interest will be promoted thereby.
c. The invitation to bid and the contract awarded shall contain such
other terms and conditions, and such provisions for penalties, as the
letting agency may deem desirable.
* d. Any contract awarded pursuant to this subdivision shall contain a
clause that the contract shall be deemed executory to the extent of the
moneys available and that no liability shall be incurred by the fund
beyond the moneys available therefor.
* NB Effective until June 30, 2026
* d. The form of any contract awarded pursuant to this subdivision
shall be approved by the attorney general and by the comptroller and
shall contain a clause that the contract shall be deemed executory to
the extent of the moneys available and that no liability shall be
incurred by the fund beyond the moneys available therefor.
* NB Effective June 30, 2026
e. The letting agency shall require such deposits, bonds and security
in connection with the submission of bids, the award of contracts and
the performance of work as it shall determine to be in the public
interest and for the protection of the state, the state university, the
fund and the letting agency.
f. Notwithstanding the provisions of any other law to the contrary,
all contracts for public work awarded by the state university
construction fund pursuant to this subdivision shall be in accordance
with section one hundred thirty-nine-f of the state finance law.
9. No payments shall be made by the comptroller from appropriated
moneys on account of any construction contract for a facility until the
bills or estimates presented for such payment shall have been duly
certified to be correct (i) by the chairman of the fund or by an officer
of the fund duly designated for that purpose, or (ii) if the dormitory
authority is the letting agency, by the chairman thereof or by an
officer or employee thereof duly designated for that purpose.
10. Whenever the fund deems it necessary as a result of or in
connection with the construction, acquisition, reconstruction,
rehabilitation and improvement of any academic building, dormitory, and
other facility, to provide for the removal, relocation, replacement,
reconstruction, repair or extension by a municipality, county, town,
village or public service corporation, of water mains, sewer pipes,
telephone lines and other facilities maintained for public use and owned
by such municipality, county, town, village or public service
corporation, it shall have the power to contract with such municipality,
county, town, village or public service corporation and such
municipality, county, town, village or public service corporation shall
have the power to contract with the fund, for such removal, relocation,
replacement, reconstruction, repair or extension. The contract for such
removal, relocation, replacement, reconstruction, repair or extension
may, at the discretion of the fund, be entered into by the fund without
the necessity of public bidding or public letting. Upon the completion
and acceptance by the fund of the performance of such removal,
relocation, replacement, reconstruction, repair or extension, said water
mains, sewer pipes, telephone lines and other facilities shall be
maintained by the municipality, county, town, village or public service
corporation, as the case may be.
hundred sixty-two, the fund as agent for the state university shall
construct, acquire, reconstruct, rehabilitate and improve, or cause to
be constructed, acquired, reconstructed, rehabilitated and improved, all
academic buildings, dormitories and other facilities to be constructed,
acquired, reconstructed, rehabilitated or improved at state-operated
institutions or statutory or contract colleges under the jurisdiction of
the state university, provided that legislation or appropriations
authorizing the same (i) have been requested by the state university
trustees, (ii) have been recommended by the governor in a budget bill
relating to a state fiscal year commencing on or after April first,
nineteen hundred sixty-two which specifies the facilities to be
constructed, acquired, reconstructed, rehabilitated or improved and the
total estimated cost for each such facility, and (iii) have been
approved by the legislature for such state fiscal year. With respect to
state fiscal years commencing on or after April first, nineteen hundred
sixty-three, the budget bill referred to in the preceding sentence shall
include in addition to the items stated the date when it is desired that
the construction, acquisition, reconstruction, rehabilitation or
improvement of each facility referred to therein be completed, and all
work for such purposes shall be performed in such manner as to assure
completion, so far as practicable, by the dates specified.
2. The fund may construct, acquire, reconstruct, rehabilitate and
improve such facilities, other than dormitories, by its own employees,
by agreement with a state retirement system or any state agency
authorized to perform such work, or by contract awarded pursuant to
subdivision eight of this section.
3. The fund may construct, acquire, reconstruct, rehabilitate and
improve dormitories only by agreement with the dormitory authority
established under title four of the public authorities law, except that
if the dormitory authority indicates its unwillingness to enter into
such an agreement with the fund for such purpose, the fund may
construct, acquire, reconstruct, rehabilitate and improve such
dormitories by its own employees, by agreement with a state retirement
system or any state agency (other than the dormitory authority)
authorized to perform such work, or by contract awarded pursuant to
subdivision eight of this section, subject, however, to the rights of
holders of outstanding bonds and notes of the dormitory authority with
respect to existing dormitories.
4. In the event that the dormitory authority enters into an agreement
with the fund for construction, acquisition, reconstruction,
rehabilitation or improvement of a facility for the state university, it
shall perform the work required or cause the work required to be
performed in accordance with the terms of such agreement either by its
own employees or by contract awarded pursuant to the provisions of title
four of the public authorities law. In the event any state agency other
than the dormitory authority enters into an agreement with the fund for
such work it shall perform the same either by its own employees or by
contract awarded pursuant to subdivision eight of this section.
5. No contract for the construction, acquisition, reconstruction,
rehabilitation or improvement of academic buildings, dormitories and
other facilities shall be awarded by any letting agency unless the state
university trustees shall have approved the architectural concept of the
facility to be constructed, acquired, reconstructed, rehabilitated or
improved and unless the fund shall have approved the proposed terms of
such contract, including the detailed plans and specifications for such
facility.
6. Each contract for the construction, acquisition, reconstruction,
rehabilitation or improvement of academic buildings, dormitories and
other facilities shall include a provision that the architect who
designed the facility, or an architect or engineer, or, for projects
authorized by section three hundred seventy-two-a of this article a
construction manager or other consultant, retained specifically for the
purpose of supervision, shall supervise the work to be performed through
to completion and shall see to it that the materials furnished and the
work performed are in accordance with the drawings, plans,
specifications and contract therefor.
7. Any letting agency may in its discretion award one contract for all
the work to be performed in construction, acquisition, reconstruction,
rehabilitation or improvement without separate and independent bidding
or letting on subdivisions of work to be performed.
8. * All contracts which are to be awarded pursuant to this
subdivision shall be awarded by public letting in accordance with the
following provisions, notwithstanding any contrary provision of section
one hundred thirty-five, one hundred thirty-six, one hundred thirty-nine
or one hundred forty of the state finance law or any other law,
provided, however, that where the estimated expense of any contract
which may be awarded pursuant to this subdivision is less than two
hundred fifty thousand dollars, a performance bond and a bond for the
payment of labor and material may, in the discretion of the fund, not be
required, and except that in the discretion of the fund, a contract may
be entered into for such purposes without public letting where the
estimated expense thereof is less than twenty thousand dollars, or where
in the judgment of the fund an emergency condition exists as a result of
damage to an existing academic building, dormitory or other facility
which has been caused by an act of God, fire or other casualty, or any
other unanticipated, sudden and unexpected occurrence, that has resulted
in damage to or a malfunction in an existing academic building,
dormitory or other facility and involves a pressing necessity for
immediate repair, reconstruction or maintenance in order to permit the
safe continuation of the use or function of such facility, or to protect
the facility or the life, health or safety of any person, and the nature
of the work is such that in the judgment of the fund it would be
impractical and against the public interest to have public letting;
provided, however, that the fund, prior to awarding a contract hereunder
because of an emergency condition notify the comptroller of its intent
to award such a contract:
* NB Effective until June 30, 2026
* All contracts which are to be awarded pursuant to this subdivision
shall be awarded by public letting in accordance with the following
provisions, notwithstanding any contrary provision of section one
hundred thirty-five, one hundred thirty-six, one hundred thirty-nine or
one hundred forty of the state finance law, provided, however, that
where the estimated expense of any contract which may be awarded
pursuant to this subdivision is less than fifty thousand dollars, a
performance bond and a bond for the payment of labor and material may,
in the discretion of the fund, not be required, and except that in the
discretion of the fund, a contract may be entered into for such purposes
without public letting where the estimated expense thereof is less than
twenty thousand dollars, or where in the judgment of the fund an
emergency condition exists as a result of damage to an existing academic
building, dormitory or other facility which has been caused by an act of
God, fire or other casualty, or any other unanticipated, sudden and
unexpected occurrence, that has resulted in damage to or a malfunction
in an existing academic building, dormitory or other facility and
involves a pressing necessity for immediate repair, reconstruction or
maintenance in order to permit the safe continuation of the use or
function of such facility, or to protect the facility or the life,
health or safety of any person, and the nature of the work is such that
in the judgment of the fund it would be impractical and against the
public interest to have public letting; provided, however, that the
fund, prior to awarding a contract hereunder because of an emergency
condition notify the comptroller of its intent to award such a contract:
* NB Effective June 30, 2026
a. If contracts are to be publicly let, the letting agency shall
advertise the invitation to bid in a newspaper published in the city of
Albany and in such other newspapers as will be most likely in its
opinion to give adequate notice to contractors of the work required and
of the invitation to bid provided, however, that where the estimated
expense of any contract which may be awarded pursuant to this
subdivision is less than fifty thousand dollars, the letting agency may
advertise the invitation to bid solely through the procurement
opportunities newsletter published pursuant to section one hundred
forty-two of the economic development law. The invitation to bid shall
contain such information as the letting agency shall deem appropriate
and a statement of the time and place where all bids received pursuant
to such notice will be publicly opened and read.
b. The letting agency shall not award any contract after public
bidding except to the lowest bidder who in its opinion is qualified to
perform the work required and is responsible and reliable. The letting
agency may, however, reject any or all bids, again advertise for bids,
or waive any informality in a bid if it believes that the public
interest will be promoted thereby.
c. The invitation to bid and the contract awarded shall contain such
other terms and conditions, and such provisions for penalties, as the
letting agency may deem desirable.
* d. Any contract awarded pursuant to this subdivision shall contain a
clause that the contract shall be deemed executory to the extent of the
moneys available and that no liability shall be incurred by the fund
beyond the moneys available therefor.
* NB Effective until June 30, 2026
* d. The form of any contract awarded pursuant to this subdivision
shall be approved by the attorney general and by the comptroller and
shall contain a clause that the contract shall be deemed executory to
the extent of the moneys available and that no liability shall be
incurred by the fund beyond the moneys available therefor.
* NB Effective June 30, 2026
e. The letting agency shall require such deposits, bonds and security
in connection with the submission of bids, the award of contracts and
the performance of work as it shall determine to be in the public
interest and for the protection of the state, the state university, the
fund and the letting agency.
f. Notwithstanding the provisions of any other law to the contrary,
all contracts for public work awarded by the state university
construction fund pursuant to this subdivision shall be in accordance
with section one hundred thirty-nine-f of the state finance law.
9. No payments shall be made by the comptroller from appropriated
moneys on account of any construction contract for a facility until the
bills or estimates presented for such payment shall have been duly
certified to be correct (i) by the chairman of the fund or by an officer
of the fund duly designated for that purpose, or (ii) if the dormitory
authority is the letting agency, by the chairman thereof or by an
officer or employee thereof duly designated for that purpose.
10. Whenever the fund deems it necessary as a result of or in
connection with the construction, acquisition, reconstruction,
rehabilitation and improvement of any academic building, dormitory, and
other facility, to provide for the removal, relocation, replacement,
reconstruction, repair or extension by a municipality, county, town,
village or public service corporation, of water mains, sewer pipes,
telephone lines and other facilities maintained for public use and owned
by such municipality, county, town, village or public service
corporation, it shall have the power to contract with such municipality,
county, town, village or public service corporation and such
municipality, county, town, village or public service corporation shall
have the power to contract with the fund, for such removal, relocation,
replacement, reconstruction, repair or extension. The contract for such
removal, relocation, replacement, reconstruction, repair or extension
may, at the discretion of the fund, be entered into by the fund without
the necessity of public bidding or public letting. Upon the completion
and acceptance by the fund of the performance of such removal,
relocation, replacement, reconstruction, repair or extension, said water
mains, sewer pipes, telephone lines and other facilities shall be
maintained by the municipality, county, town, village or public service
corporation, as the case may be.