Bill > S04750

This bill amends existing laws to prohibit the retention of payments for materials delivered and accepted in construction projects, with several key provisions aimed at protecting material suppliers and ensuring timely payments. The bill modifies state finance law, general municipal law, and general business law to require that public owners and contractors fully pay for materials that have been delivered, accepted, and meet specific quality standards (such as having a manufacturer's warranty or meeting industry standards). It mandates that no more than 5-10% can be retained from progress payments, and explicitly states that no portion of payment for qualifying materials can be withheld. The legislation also establishes strict timelines for payments, requiring contractors to pay subcontractors and material suppliers within seven calendar days of receiving payment from the public owner, with interest penalties for late payments. Additionally, the bill removes previous limitations on material payments, such as restrictions on paying for materials in short supply or specially fabricated items. These changes aim to improve cash flow for contractors and material suppliers by ensuring more predictable and timely compensation for their work and materials, with the new rules applying to materials delivered and accepted on or after the law's effective date.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S4750