Bill > A04905

This bill amends the New York lien law to require a surety bond or irrevocable letter of credit for certain public improvement projects. Specifically, when a public improvement project has an estimated cost exceeding $250,000 and no public fund has been established for financing, the chief financial officer of the public owner must require the private entity undertaking the project to post a bond or letter of credit. This financial guarantee must be issued by a surety licensed in New York and equal to the full cost of the construction work. The purpose of this requirement is to ensure prompt payment to contractors, subcontractors, and all laborers and material suppliers involved in the project. The bill also makes minor language updates, such as replacing gendered pronouns like "his or her" with the gender-neutral "their". The changes will apply to all contracts entered into on or after the bill's effective date, which is immediate upon passage.

Justice

https://www.nysenate.gov/legislation/bills/2025/A4905