Bill > S05655

This bill amends the New York General Business Law to void any provisions in construction contracts that require retainage (money withheld from a contractor's payment as a form of financial protection for the project owner) in an amount greater than 5% of the total contract sum. Specifically, the bill adds a new subdivision to Section 757 of the General Business Law that invalidates contract clauses, covenants, or understandings that mandate retainage exceeding the 5% threshold as outlined in section 756-c of the same article. By limiting retainage to no more than 5% of the contract value, the bill aims to provide more financial predictability and cash flow for contractors by preventing owners from withholding excessive funds during the course of a construction project. The bill would take effect immediately upon enactment.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S5655