Bill > S04840

This bill amends the New York State lien law to require a surety bond or irrevocable letter of credit for certain public improvement projects where no public funding has been established. Specifically, for projects with an estimated cost over $250,000 without a pre-existing public fund, the chief financial officer of the public owner must require the private entity undertaking the project to obtain a surety bond issued by a New York-licensed surety, or an irrevocable letter of credit, equal to the total construction work cost. The bond or credit would guarantee prompt payment to the primary contractor, subcontractors, and all workers and material suppliers involved in the project. The bill also makes some minor language updates, such as replacing gendered pronouns like "his or her" with the gender-neutral "their". The changes are designed to provide additional financial protection for workers and subcontractors by ensuring a reliable mechanism for payment in projects without established public funding. The bill would take effect immediately and apply to contracts entered into on or after its effective date.

Justice

https://www.nysenate.gov/legislation/bills/2025/S4840