Bill Text: NY A10552 | 2015-2016 | General Assembly | Introduced
Bill Title: Relates to payment of public works contracts.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2016-06-02 - referred to governmental operations [A10552 Detail]
Download: New_York-2015-A10552-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10552 IN ASSEMBLY June 2, 2016 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Peoples- Stokes, Cusick) -- (at request of the Dormitory Authority) -- read once and referred to the Committee on Governmental Operations AN ACT to amend the state finance law, in relation to payment on public works contracts The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 139-f of the state finance law, as 2 added by chapter 769 of the laws of 1978, is amended to read as follows: 3 1. Payment by public owners to contractors. The contractor shall peri- 4 odically, in accordance with the terms of the contract, submit to the 5 public owner and/or [his] its agent a requisition for a progress payment 6 for the work performed and/or materials furnished to the date of the 7 requisition, less any amount previously paid to the contractor. The 8 contractor shall include in each such requisition a request for payment 9 for all work performed and material provided by subcontractors and/or 10 materialmen for which the contractor has received a request for payment 11 and which the contractor has not rejected, in whole or in part. Each 12 subcontractor and/or materialman request for payment shall be accepted 13 or rejected, in whole or in part, by the contractor not less than thirty 14 but not more than forty-five days following the date of the contractor's 15 receipt of said subcontractor's and/or materialman's request for 16 payment. In the event the contractor determines to reject such subcon- 17 tractor's and/or materialman's request for payment, in whole or in part, 18 it shall provide written notice of the rejection to the applicable 19 subcontractor and/or materialman accompanied by a reasoned elaboration 20 in support of the contractor's rejection, in whole or in part, together 21 with a written description of the work, materials, supporting documenta- 22 tion or other information required in order for the request for payment 23 to be approved; provided, however, the contractor shall include in its 24 next requisition any portion of such subcontractor's or materialman's 25 request for payment which is not rejected by the contractor; and no such 26 notice or elaboration shall be required for purposes of retainage as 27 authorized by this section. The contractor's acceptance or rejection of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14335-02-6A. 10552 2 1 a request for a payment for work performed and material provided by 2 subcontractors and/or materialmen shall in no way affect the public 3 owner's legal rights to approve or reject, in whole or in part, the 4 contractor's request for payment. The public owner shall in accordance 5 with the terms of the contract approve and promptly pay the requisition 6 for the progress payment less an amount necessary to satisfy any claims, 7 liens or judgments against the contractor which have not been suitably 8 discharged and less any retained amount as hereafter described. The 9 public owner shall retain not more than five per centum of each progress 10 payment to the contractor except that the public owner may retain in 11 excess of five per centum but not more than ten per centum of each 12 progress payment to the contractor provided that there are no require- 13 ments by the public owner for the contractor to provide a performance 14 bond and a labor and material bond both in the full amount of the 15 contract. The public owner shall pay, in accordance with the terms of 16 the contract, upon requisition from the contractor, for materials perti- 17 nent to the project which have been delivered to the site or off-site by 18 the contractor and/or subcontractor and suitably stored and secured as 19 required by the public owner and the contractor provided, the public 20 owner may limit such payment to materials in short and/or critical 21 supply and materials specially fabricated for the project each as 22 defined in the contract. When the work or major portions thereof as 23 contemplated by the terms of the contract are substantially completed, 24 the contractor shall submit to the public owner and/or his agent a 25 requisition for payment of the remaining amount of the contract balance. 26 Upon receipt of such requisition the public owner shall approve and 27 promptly pay the remaining amount of the contract balance less two times 28 the value of any remaining items to be completed and an amount necessary 29 to satisfy any claims, liens or judgments against the contractor which 30 have not been suitably discharged. As the remaining items of work are 31 satisfactorily completed or corrected, the public owner shall promptly 32 pay, upon receipt of a requisition, for these remaining items less an 33 amount necessary to satisfy any claims, liens or judgments against the 34 contractor which have not been suitably discharged. Any claims, liens 35 and judgments referred to in this section shall pertain to the project 36 and shall be filed in accordance with the terms of the applicable 37 contract and/or applicable laws. 38 § 2. This act shall take effect immediately and shall apply to all 39 contracts advertised or solicited for bid by a public owner on or after 40 such effective date.
