New York Could Further Limit Retainage on Public and Private Construction Projects

Construction attorneys Adam Paterno, Timothy Froessel and David McNamara co-authored an article featured in The Real Estate Finance Journal discussing proposed legislation in New York that could significantly impact retainage practices in public and private construction projects. The article examines identical bills in the New York State Assembly and Senate that aim to prohibit retaining any payment due for materials delivered and accepted on construction projects. The authors detail how these amendments would affect the State Finance Law, General Municipal Law and General Business Law by requiring full payment for delivered materials on public works projects and prohibiting retainage for material suppliers on all types of construction projects. They also explore the potential implications for project owners, including the need for more rigorous inspection protocols and the increased importance of supplier warranty provisions in construction contracts.

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