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Bill > A05405
NY A05405
NY A05405Voids provisions in construction contracts requiring retainage as expressly provided for by section seven hundred fifty-six-c of the general business law in an amount exceeding five percent of the contract sum.
summary
Introduced
02/13/2025
02/13/2025
In Committee
05/22/2025
05/22/2025
Crossed Over
06/11/2025
06/11/2025
Passed
12/19/2025
12/19/2025
Dead
Signed/Enacted/Adopted
12/19/2025
12/19/2025
Introduced Session
2025-2026 General Assembly
Bill Summary
AN ACT to amend the general business law, in relation to void provisions in construction contracts
AI Summary
This bill amends the New York General Business Law to void any provisions in construction contracts that require retainage (a percentage of payment withheld by a project owner from a contractor during construction as a financial safeguard) in excess of 5% of the total contract sum. Specifically, the bill adds a new subdivision to Section 757 that invalidates any contract provisions, clauses, or agreements that mandate retainage beyond the 5% threshold as outlined in section 756-c of the General Business Law. The purpose of this legislation appears to be to limit the amount of money that can be withheld from contractors during construction projects, potentially improving cash flow and reducing financial strain on contractors. The bill will take effect immediately upon enactment, meaning it will apply to new and existing construction contracts.
Committee Categories
Business and Industry
Sponsors (3)
Last Action
approval memo.36 (on 12/19/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.nysenate.gov/legislation/bills/2025/A5405 |
| BillText | https://assembly.state.ny.us/leg/?default_fld=&bn=A05405&term=2025&Summary=Y&Actions=Y&Text=Y&Committee%26nbspVotes=Y&Floor%26nbspVotes=Y#A05405 |
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