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This entry was published on 2023-11-03
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SECTION 8
Contracts
New York City Health and Hospitals Corporation Act 1016/69 (HHC) CHAPTER 1016
§ 8. Contracts. 1. Any contract let by the corporation for the
construction of a health facility shall be publicly let to the lowest
responsible bidder in the manner provided by, and in conformity with,
the provisions of article five-a of the general municipal law, except
that where the cost of such a contract does not exceed ten thousand
dollars such contract may be entered into without public letting;
provided, however, that if the corporation determines that in a special
case or cases it would not be in the public interest to comply with the
terms of this section and the board of estimate of the city, by
resolution, rule or regulation adopted by the vote of two-thirds of the
whole number of votes authorized to be cast by all of the members of the
board of estimate, concurs in such determination, then such a contract
may be entered into by the corporation without public letting as
authorized by the said resolution, rules or regulations. Notwithstanding
the provisions of this subdivision one, if the corporation determines
that circumstances exist whereby it would be detrimental to or
impracticable for the corporation to comply with the public letting
requirements of this section concerning a change order then such a
change order may be let by the corporation without public letting. For
the purposes of article five-a of the general municipal law, the
corporation shall be deemed to be a "political subdivision".

2. The corporation may make rules and regulations governing the
qualifications of bidders entering into such a contract where the cost
of such a contract exceeds twenty-five thousand dollars. The bidding may
be restricted to those who shall have qualified prior to the receipt of
bids according to standards fixed by the corporation; provided, however,
that notice or notices for the submission of qualifications shall be
published in the official publication of the city and in an appropriate
trade journal published in the city, or if no such trade journal exists,
in a newspaper with a general circulation in the city, at least once,
not less than ten days prior to the date fixed for the filing of
qualifications.

3. The corporation, in its discretion, may assign the separate
contracts awarded pursuant to section one hundred one of the general
municipal law to the general contractor for supervision. Each contract
for the construction of a health facility may include a provision that
the architect who designed the facility, or the architect or engineer
retained or employed 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 contracts
therefor.

4. All bids received for the letting of any contract pursuant to this
section shall be submitted to the corporation and shall be publicly
opened and read by the corporation. Nothing in this section shall be
construed to limit the power of the corporation to do any construction
by or through its own officers, agents or employees.

5. (a) In addition to any other bond or bonds that may be required by
law for the completion of a health facility, or in the absence of any
such requirement, the corporation shall require, prior to the approval
of any contract or agreement providing for the construction of a health
facility, that the general contractor furnish a bond guaranteeing prompt
payment of moneys due to all persons furnishing labor or materials to or
for the general contractor or to his subcontractors in the prosecution
of the entire work provided for in such agreement. A copy of such
payment bond shall be filed in the offices of the corporation and shall
be open to public inspection.

(b) Every person who has furnished labor or material, to or for the
general contractor or to a sub-contractor in the prosecution of the work
provided for in the contract or other agreement of the corporation with
the general contractor and who has not been paid in full therefor before
the expiration of a period of ninety days after the day on which the
last of the labor was performed or material was furnished by him for
which the claim is made, shall have the right to sue on such payment
bond in his own name for the amount, or the balance thereof, unpaid at
the time of commencement of the action; provided, however, that a person
having a direct contractual relationship with a sub-contractor of the
general contractor furnishing the payment bond but no contractual
relationship express or implied with such general contractor shall not
have a right of action upon the bond unless he shall have given written
notice to such general contractor within ninety days from the date on
which the last of the labor was performed or the last of the material
was furnished, for which his claim is made, stating with substantial
accuracy the amount claimed and the name of the party to whom the
material was furnished or for whom the labor was performed. The notice
shall be served by delivering the same personally to the general
contractor or by mailing the same by registered mail, postage pre-paid,
in an envelope addressed to the general contractor at any place where he
maintains an office or conducts his business or at his residence.

6. Any contracts for design, construction, services and materials
entered into by the corporation pursuant to this act shall be deemed
state contracts within the meaning of that term as set forth in article
fifteen-A of the executive law, and the corporation shall be deemed, for
the purposes of this act, a contracting agency as that term is used in
article fifteen-A of the executive law.

* 7. The corporation shall have the authority to use the same measures
to enhance mentoring opportunities for small businesses as are available
to the city of New York pursuant to section thirteen hundred nine of the
New York city charter. Upon the written consent of the corporation, the
corporation shall be subject to the rules and the goal authorized under
subdivision g of section thirteen hundred nine of such charter with
respect to a mentoring program established pursuant to this subdivision,
provided that after execution of such written consent, a duly authorized
officer of the corporation and the city, acting by the mayor, may enter
into a memorandum of understanding relating to mentoring opportunities
authorized under this subdivision.

* NB Effective February 22, 2024