NY S03181

Requires public owners or contractors to release retainage held for subcontractors' work within 60 days of completion and acceptance of the subcontractor's work, with exceptions for outstanding claims, liens, judgments, or unfinished punch list items.

Contractors must pay subcontractors within seven calendar days of receiving payment from the public owner, with interest accruing at the rate established under General Business Law section 756-b if payment is delayed beyond the seven-day period.

Limits contractor retainage to five percent of each subcontractor/materialman payment, except up to ten percent may be retained if the subcontractor cannot or will not provide performance and labor/material bonds.

Invalidates any subcontract clause making subcontractor payment contingent upon the public owner paying the contractor, if the contractor fails to submit a requisition for the remaining contract balance within 90 days of substantial completion.

Applies to all contracts entered into on or after the bill's effective date.