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The Finance Base
Assembly Bill 5335

New Jersey Bill A5335 Would Limit Payment Holds for Minor Paperwork Errors

New Jersey Assembly Bill 5335 proposes to bar public entities from withholding partial construction payments solely for certain minor documentation errors, subject to specific conditions and exclusions.

By TheFinanceBase Team 2 min read
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New Jersey Assembly Bill 5335 proposes to stop public and governmental entities from withholding a partial construction payment solely because of certain minor clerical, administrative, or technical errors. It is an introduced proposal, not established current law: the text is marked “As introduced” and dated June 28, 2026. The available information does not verify its latest legislative status.

What A5335 proposes

Sponsored by Assemblyman Clinton Calabrese, A5335 would amend New Jersey construction-payment provisions. Its synopsis says it would prohibit withholding partial payments to contractors by public entities for de minimis clerical, administrative, or technical errors. The bill’s scope includes public and governmental entities such as boards of education, State colleges, the Department of Transportation, county boards of commissioners, the New Jersey Turnpike Authority, and certain contracting units. Read the introduced bill text.

The proposal defines a “clerical, administrative, or technical error” as an unintentional error, omission, defect, or minor mathematical discrepancy in a payment application or supporting documentation that does not materially affect the amount due, contractor performance, or a State agency’s ability lawfully to make the payment.

When the proposed restriction would apply

The bill sets conditions that must all be satisfied before its restriction on withholding applies:

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  • The work associated with the payment was satisfactorily performed in accordance with the contract.
  • The error does not affect cost, scope, safety, insurance coverage, bonding, or work eligibility.
  • The error is not related to fraud, misrepresentation, or a material contractual requirement.
  • The payment is not final.

That makes the proposal narrower than a general rule requiring payment despite any paperwork problem. Deficient work, a material contractual issue, or an error affecting one of the listed matters is outside the stated restriction. Final payments are also excluded.

Other payment provisions the bill would amend

The introduced text also proposes amendments to provisions addressing owner payment timing, payments from prime contractors to subcontractors and subsubcontractors, interest on late payments, and when a contractor may suspend performance after written notice. These are proposed changes in A5335, not a statement of what current law requires. The bill says it would take effect immediately if enacted.

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How to check the bill’s status

The introduced text alone does not establish whether A5335 has advanced, been amended, or become law. For the latest action, search the New Jersey Legislature’s official bill docket for Assembly Bill 5335 in the 2026–2027 session. Until the docket confirms otherwise, describe it as a proposal.

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