New York Payment Protection Legislation for Hybrid Construction Projects Loses Steam, by Partner Andrew Richards, 6-18-2024

Important legislation that would require private developers to post payment security (e.g., a bond or letter of credit) on certain hybrid construction projects built in New York State failed to pass the Assembly before the legislative session ended.

Kaufman Dolowich recently reported that the bill, S. 3551, had made it through the NYS Senate. But despite lobbying efforts the legislation has stalled within the Assembly.

S. 3551 would impact hybrid construction projects-those public improvement projects built using private funds costing more than $250,000.

The law, if passed, would provide all parties supplying labor and/or materials to the project some measure of protection against non-payment for work performed and/or material delivered in lieu of filing a public improvement lien or private improvement lien, which are not permissible on a hybrid project.

This legislation, which is critically needed to ensure contractors, subcontractors and suppliers, are adequately paid, will hopefully be reintroduced in the next legislative session. Kaufman Dolowich will continue to monitor future developments.

If your business needs assistance complying with federal, state or local statutes or defending claims or disputes, our team of skilled construction law attorneys are well equipped to handle a wide range of issues in both private and public construction projects.