Bill > A07098

This bill modifies existing laws governing payment processes for public construction projects in New York, specifically updating how public owners (such as state agencies or municipal entities) pay contractors and how contractors pay subcontractors. The bill introduces several key changes, including requiring public owners to make periodic progress payments to contractors and subcontractors based on requisitions that detail work performed and materials furnished. It standardizes payment retention rules, allowing public owners to retain up to 5% of progress payments (and potentially up to 10% under certain conditions), and establishes more detailed guidelines for final payments when projects are substantially completed. The bill also clarifies that "subcontractor" only refers to those directly reporting to the main contractor, not sub-subcontractors. Additionally, the legislation removes previous provisions about specific payment timelines and interest calculations, replacing them with more comprehensive payment and requisition procedures. The changes aim to provide more clarity and structure to payment processes in public construction projects, potentially offering better financial predictability and transparency for contractors and subcontractors.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A7098