NY S04267

Redefines "substantial completion" in construction contracts to mean the project stage when work is sufficiently complete for the public owner to occupy or utilize it for its intended use, replacing the previous vague language.

For school districts and boards of cooperative educational services, "substantial completion" is defined as the date of a partial or final certificate of substantial completion certified by the architect or engineer when construction is code compliant.

Requires public owners to submit a written list of all remaining items to be completed within 45 business days after substantial completion, and contractors must pass this list to subcontractors within 7 calendar days.

Limits retainage (holdback) to 5% of each progress payment during construction, except that up to 10% may be retained if no performance and labor/material bonds are required.

Establishes payment timelines: public owners other than New York City must pay within 30 days of receiving requisitions, or 45 days if an elected official approval is required, with interest accruing on late payments at the state tax overpayment rate.