A10446 Summary:

BILL NOA10446
 
SAME ASNo Same As
 
SPONSORCusick
 
COSPNSR
 
MLTSPNSR
 
Amd §§756, 756-a & 756-c, Gen Bus L
 
Relates to payment and retainage in construction contracts; authorizes contractors to invoice owners upon substantial completion of a project.
Go to top    

A10446 Actions:

BILL NOA10446
 
05/27/2016referred to economic development
Go to top

A10446 Committee Votes:

Go to top

A10446 Floor Votes:

There are no votes for this bill in this legislative session.
Go to top

A10446 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10446
 
SPONSOR: Cusick
  TITLE OF BILL: An act to amend the general business law, in relation to payment and retainage in construction contracts   PURPOSE OR GENERAL IDEA OF BILL: This bill amends the general business law to provide for the timely release of retainage on private construction jobs when such job has met the requirements of "substantial completion."   SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends section 756 of the general business law by adding a definition for the term "substantial completion." Such "substantial completion" shall mean that when the work is sufficiently completed in accordance with the construction contract that the project owner may occupy or utilize the work for its intended use. Section 2 amends subdivision (2) of Section 756-a of the General Busi- ness Law stating that a contractor shall be entitled to submit a final invoice for payment upon reaching such substantial completion and removes language stating that a contractor may shall be entitled to submit a final invoice "upon the performance of all the contractor's obligation under the contract." Section 3 amends Section 756-c of the General Business Law limiting the retainage permitted to "no more than five per centum" of the contract sum. Existing law does not state a maximum amount of retainage and leaves it to the mutual agreement of the relevant parties. Section 4 states that the act shall take effect immediately and shall apply to contracts entered into on or after such effective date.   JUSTIFICATION: Currently, subcontractors who have finished their work on a private job must wait until the entire project is complete before receiving their retainage. This creates hardships for subcontractors who must finance their work in advance and sometimes wait for unreasonably long periods of time for payment. This bill creates a new definition for "substantial completion" of a construction contract and permits a contractor to issue a final invoice up such completion. It also limits retainage to no more than 5% of the contract. This bill ensures that all parties understand when a project is completed for invoicing purposes as well as limiting the amount of retainage that can be withheld to a reasonable amount.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately and shall apply to all contracts entered into on or after such effective date.
Go to top