STATE OF NEW YORK
________________________________________________________________________
6985--B
2021-2022 Regular Sessions
IN ASSEMBLY
April 19, 2021
___________
Introduced by M. of A. CUSICK, STIRPE, ZINERMAN -- read once and
referred to the Committee on Economic Development -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
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:
1 Section 1. The opening paragraph of paragraph (a) of subdivision 2 of
2 section 756-a of the general business law, as amended by chapter 417 of
3 the laws of 2009, is amended to read as follows:
4 A contractor shall be entitled to invoice the owner for interim
5 payments at the end of the billing cycle. A contractor shall be entitled
6 to submit a final invoice for payment in full [upon the performance of
7 all the contractor's obligation under the contract] upon reaching
8 substantial completion, as such term is defined in the contract or as it
9 is contemplated by the terms of the contract.
10 § 2. Section 756-c of the general business law, as added by chapter
11 127 of the laws of 2002, is amended to read as follows:
12 § 756-c. Retention. By mutual agreement of the relevant parties an
13 owner may retain [a reasonable amount] no more than five per centum of
14 the contract sum as retainage. A contractor or subcontractor may also
15 retain [a reasonable amount] no more than five per centum for retainage
16 [so long as the amount does not] and in no case shall retainage exceed
17 the actual percentage retained by the owner. Retainage shall be released
18 by the owner to the contractor no later than thirty days after the final
19 approval of the work under a construction contract. In the event that an
20 owner fails to release retainage as required by this article, or the
21 contractor or subcontractor fails to release a proportionate amount of
22 retainage to the relevant parties after receipt of retainage from the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01144-06-1
A. 6985--B 2
1 owner, the owner, contractor, or subcontractor, as the case may be,
2 shall be subject to the payment of interest at the rate of one percent
3 per month on the date retention was due and owing.
4 § 3. This act shall take effect immediately and shall apply to
5 contracts entered into on or after such effective date.
