§ 756-b. Remedies. 1. (a) If any interim or final payment to a
contractor is delayed beyond the due date established in paragraph (a)
of subdivision three of section seven hundred fifty-six-a of this
article, the owner shall pay the contractor interest beginning on the
next day at the rate of one percent per month or fraction of a month on
the unpaid balance, or at a higher rate consistent with the construction
contract.

(b) Notwithstanding any contrary agreement, if any interim or final
payment to a subcontractor is delayed beyond the due date established in
paragraph (b) of subdivision three of section seven hundred fifty-six-a
of this article the contractor or subcontractor shall pay its
subcontractor interest, beginning on the next day, at the rate of one
percent a month or fraction of a month on the unpaid balance, or at a
higher rate consistent with the construction contract.

2. (a) (i) If an owner fails to approve or disapprove an invoice
within the time limits established in subparagraph (i) of paragraph (a)
of subdivision two of section seven hundred fifty-six-a of this article,
or to pay the contractor the undisputed invoice amount within the time
limits provided by paragraph (a) of subdivision three of section seven
hundred fifty-six-a of this article, the contractor may suspend
contractually required performance, only after providing the owner
written notice and an opportunity to cure consistent with subparagraph
(ii) of this paragraph.

(ii) A contractor intending to suspend performance on the construction
contract for failure of the owner to make timely payments or approvals
within the time limits provided by this article must provide the owner
written notice at least ten calendar days before the contractor's
intended suspension. Such notice shall:

(A) inform the owner that payment for undisputed invoice amounts have
not been received; and

(B) state the intent of the contractor to suspend performance for
non-payment.
If after the tenth calendar day following written notice the owner has
not cured the deficiency, the contractor may suspend performance.

(iii) A contractor shall not be deemed in breach of the construction
contract for suspending performance pursuant to this section.

(b)(i) A subcontractor may suspend contractually required performance
if any or all of the occurrences outlined in clauses (A), (B) and (C) of
this subparagraph occur and only after providing written notice and an
opportunity to cure consistent with subparagraph (ii) of this paragraph:

(A) If an owner fails to make timely payments for undisputed invoices
within the time limits established by subdivision three of section seven
hundred fifty-six-a of this article for the subcontractor's work and the
contractor also fails to pay the subcontractor for the approved work;

(B) If an owner pays the contractor within the time limits established
by subdivision three of section seven hundred fifty-six-a of this
article for undisputed invoices for work performed by the subcontractor
but the contractor fails to make payment to the subcontractor within the
time frames established by this article for the subcontractor's work;

(C) If an owner fails to approve or disapprove a portion of
contractor's invoice for work performed by the subcontractor within the
time limits established in paragraph (a) of subdivision two of section
seven hundred fifty-six-a of this article;

(D) If a contractor or subcontractor fails to approve or disapprove a
subcontractor's invoice within the time limits established in paragraph
(b) of subdivision three of section seven hundred fifty-six-a of this
article; or

(E) If an owner fails to approve portions of the contractors' billing
for work performed by the subcontractor within the time limits
established by this article and the reasons for such failure are not the
fault of or directly related to the subcontractor's work.

(ii) A subcontractor intending to suspend performance for failure to
receive timely payments within the time limits established pursuant to
this article must provide both the owner and the contractor written
notice at least ten calendar days before the subcontractor's intended
suspension. Such notice shall:

(A) inform the owner and the contractor that payment for undisputed
billing amounts have not been received; and

(B) state the intent of the contractor to suspend performance for
non-payment.

If after the tenth calendar day following written notice either the
owner or the contractor has not cured the deficiency, the subcontractor
may suspend performance and/or attempt to resolve in compliance with
subdivision three of this section.

(iii) A subcontractor shall not be deemed in breach of the
construction contract for suspending performance pursuant to this
section.

(iv) (A) A contractor or subcontractor that suspends performance as
provided in this section shall not be required to furnish further labor,
materials or services until the contractor or subcontractor is paid the
undisputed invoice amount at the time period for completion as provided
in the construction contract, or a final determination has been made in
compliance with subdivision three of this section and complied with. All
of the time frames established within this section shall be extended for
the length of time performance was suspended. Payment of documented
actual costs incurred for re-mobilization resulting from suspension
shall be negotiated between the parties.

(B) In the event of suspension of a construction contract, as provided
in this article, all materials, equipment, tools, construction equipment
and machinery located at the job site shall remain the sole and
exclusive property of the contractor or subcontractor and shall be
removed from the job site, if necessary, within a reasonable period of
time. Access to the contractor's or subcontractor's property shall not
be unreasonably withheld.

3. (a) Upon receipt of written notice of a complaint (i) that an owner
has violated the provisions of this article; (ii) that a contractor has
violated the provisions of this article; (iii) where a contractor
alleges a subcontractor has violated the provisions of this article;
(iv) where a subcontractor alleges a contractor has violated the
provisions of this article; (v) where a subcontractor alleges that
another subcontractor has violated the provisions of this article; (vi)
where a contractor or subcontractor alleges a material supplier has
violated the provisions of this article; or (vii) where a material
supplier alleges a contractor or subcontractor has violated the
provisions of this article; the parties shall attempt to resolve the
matter giving rise to such complaint.

(b) The written notice required under this section shall be delivered
at or sent by any means that provides written, third-party verification
of delivery to the last business address known to the party giving
notice.

(c) If efforts to resolve such matter to the satisfaction of all
parties are unsuccessful, the aggrieved party may refer the matter, not
less than fifteen days of the receipt of third party verification of
delivery of the complaint, to the American Arbitration Association for
an expedited arbitration pursuant to the Rules of the American
Arbitration Association.

(d) Upon conclusion of the arbitration proceedings, the arbitrator
shall submit to the parties his or her opinion and award regarding the
alleged violation.

(e) The award of the arbitrator shall be final and may only be vacated
or modified as provided in article seventy-five of the civil practice
law and rules upon an application made within the time provided by
section seventy-five hundred two of the civil practice law and rules.