Bill > A02212

This bill amends state laws to prohibit the retention of payment for materials delivered and accepted in construction projects, both public and private. Specifically, the bill requires that when materials are delivered to a construction site, have been accepted, are covered by a manufacturer's warranty, or meet industry standards, the owner, contractor, or subcontractor cannot withhold any portion of payment. The bill modifies existing provisions in the state finance law, general municipal law, and general business law to ensure that material suppliers are paid in full for delivered materials. It limits retainage (money withheld from payments) to a maximum of five percent for overall contract work, mandates that retainage be released within 30 days of final project approval, and imposes an interest penalty of one percent per month for late payments. The changes aim to improve cash flow for material suppliers and subcontractors by ensuring they are promptly and fully compensated for their work and materials. The bill will take effect 30 days after becoming law and will apply to materials delivered and accepted on or after that date.

Budget and Finance, Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A2212