Assembly Bill A4167

Signed By Governor
2023-2024 Legislative Session

Relates to payment and retainage in construction contracts

download bill text pdf

Sponsored By

Current Bill Status Via S3539 - Signed by Governor

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2023-A4167 (ACTIVE) - Details

See Senate Version of this Bill:
S3539
Law Section:
General Business Law
Laws Affected:
Amd §§756-a & 756-c, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2015-2016: A10446
2017-2018: A9637, S8848
2019-2020: A3558, S981
2021-2022: A6985, S5482

2023-A4167 (ACTIVE) - Summary

Relates to payment and retainage in construction contracts; authorizes contractors to invoice owners upon substantial completion of a project.

2023-A4167 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4167
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 10, 2023
                                ___________
 
 Introduced by M. of A. HUNTER, ZINERMAN, DAVILA, JACKSON, STIRPE -- read
   once and referred to the Committee on Economic Development
 
 AN  ACT  to  amend  the general business law, in relation to payment and
   retainage in construction contracts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The opening paragraph of paragraph (a) of subdivision 2 of
 section 756-a of the general business law, as amended by chapter 417  of
 the laws of 2009, is amended to read as follows:
   A  contractor  shall  be  entitled  to  invoice  the owner for interim
 payments at the end of the billing cycle. A contractor shall be entitled
 to submit a final invoice for payment in full [upon the  performance  of
 all  the  contractor's  obligation  under  the  contract]  UPON REACHING
 SUBSTANTIAL COMPLETION, AS SUCH TERM IS DEFINED IN THE CONTRACT OR AS IT
 IS CONTEMPLATED BY THE TERMS OF THE CONTRACT.
   § 2. Section 756-c of the general business law, as  added  by  chapter
 127 of the laws of 2002, is amended to read as follows:
   §  756-c.  Retention.  By  mutual agreement of the relevant parties an
 owner may retain [a reasonable amount] NO MORE THAN FIVE PER  CENTUM  of
 the  contract  sum  as retainage. A contractor or subcontractor may also
 retain [a reasonable amount] NO MORE THAN FIVE PER CENTUM for  retainage
 [so  long  as the amount does not] AND IN NO CASE SHALL RETAINAGE exceed
 the actual percentage retained by the owner. Retainage shall be released
 by the owner to the contractor no later than thirty days after the final
 approval of the work under a construction contract. In the event that an
 owner fails to release retainage as required by  this  article,  or  the
 contractor  or  subcontractor fails to release a proportionate amount of
 retainage to the relevant parties after receipt of  retainage  from  the
 owner,  the  owner,  contractor,  or  subcontractor, as the case may be,
 shall be subject to the payment of interest at the rate of  one  percent
 per month on the date retention was due and owing.
   §  3.  This  act  shall  take  effect  immediately  and shall apply to
 contracts entered into on or after such effective date.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

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