Senate Bill S7264

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7264

                            I N  S E N A T E

                             April 12, 2016
                               ___________

Introduced  by Sen. MARTINS -- (at request of the Dormitory Authority of
  the State of New York) -- read twice and  ordered  printed,  and  when
  printed to be committed to the Committee on Finance

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:

  Section 1. Subdivision 1 of section 139-f of the state finance law, as
added by chapter 769 of the laws of 1978, is amended to read as follows:
  1. Payment by public owners to contractors. The contractor shall peri-
odically,  in  accordance  with the terms of the contract, submit to the
public owner and/or [his] ITS agent a requisition for a progress payment
for the work performed and/or materials furnished to  the  date  of  the
requisition,  less  any  amount  previously paid to the contractor.  THE
CONTRACTOR SHALL INCLUDE IN EACH SUCH REQUISITION A REQUEST FOR  PAYMENT
FOR  ALL  WORK  PERFORMED AND MATERIAL PROVIDED BY SUBCONTRACTORS AND/OR
MATERIALMEN FOR WHICH THE CONTRACTOR HAS RECEIVED A REQUEST FOR  PAYMENT
AND  WHICH  THE  CONTRACTOR  HAS NOT REJECTED, IN WHOLE OR IN PART. EACH
SUBCONTRACTOR AND/OR MATERIALMAN REQUEST FOR PAYMENT SHALL  BE  ACCEPTED
OR REJECTED, IN WHOLE OR IN PART, BY THE CONTRACTOR NOT LESS THAN THIRTY
BUT NOT MORE THAN FORTY-FIVE DAYS FOLLOWING THE DATE OF THE CONTRACTOR'S
RECEIPT   OF  SAID  SUBCONTRACTOR'S  AND/OR  MATERIALMAN'S  REQUEST  FOR
PAYMENT. IN THE EVENT THE CONTRACTOR DETERMINES TO REJECT  SUCH  SUBCON-
TRACTOR'S AND/OR MATERIALMAN'S REQUEST FOR PAYMENT, IN WHOLE OR IN PART,
IT  SHALL  PROVIDE  WRITTEN  NOTICE  OF  THE REJECTION TO THE APPLICABLE
SUBCONTRACTOR AND/OR MATERIALMAN ACCOMPANIED BY A  REASONED  ELABORATION
IN  SUPPORT OF THE CONTRACTOR'S REJECTION, IN WHOLE OR IN PART, TOGETHER
WITH A WRITTEN DESCRIPTION OF THE WORK, MATERIALS, SUPPORTING DOCUMENTA-
TION OR OTHER INFORMATION REQUIRED IN ORDER FOR THE REQUEST FOR  PAYMENT
TO  BE  APPROVED; PROVIDED, HOWEVER, THE CONTRACTOR SHALL INCLUDE IN ITS
NEXT REQUISITION ANY PORTION OF SUCH  SUBCONTRACTOR'S  OR  MATERIALMAN'S
REQUEST FOR PAYMENT WHICH IS NOT REJECTED BY THE CONTRACTOR; AND NO SUCH
NOTICE  OR  ELABORATION  SHALL  BE REQUIRED FOR PURPOSES OF RETAINAGE AS
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.
              

                                                           LBD14335-02-6

S. 7264                             2

A  REQUEST  FOR  A  PAYMENT  FOR WORK PERFORMED AND MATERIAL PROVIDED BY
SUBCONTRACTORS AND/OR MATERIALMEN SHALL IN  NO  WAY  AFFECT  THE  PUBLIC
OWNER'S  LEGAL  RIGHTS  TO  APPROVE  OR REJECT, IN WHOLE OR IN PART, THE
CONTRACTOR'S  REQUEST  FOR PAYMENT. The public owner shall in accordance
with the terms of the contract approve and promptly pay the  requisition
for the progress payment less an amount necessary to satisfy any claims,
liens  or  judgments against the contractor which have not been suitably
discharged and less any retained  amount  as  hereafter  described.  The
public owner shall retain not more than five per centum of each progress
payment  to  the  contractor  except that the public owner may retain in
excess of five per centum but not more  than  ten  per  centum  of  each
progress  payment  to the contractor provided that there are no require-
ments by the public owner for the contractor to  provide  a  performance
bond  and  a  labor  and  material  bond  both in the full amount of the
contract. The public owner shall pay, IN ACCORDANCE WITH  THE  TERMS  OF
THE CONTRACT, upon requisition from the contractor, for materials perti-
nent to the project which have been delivered to the site or off-site by
the  contractor  and/or subcontractor and suitably stored and secured as
required by the public owner and the  contractor  provided,  the  public
owner  may  limit  such  payment  to  materials in short and/or critical
supply and materials  specially  fabricated  for  the  project  each  as
defined  in  the  contract.  When  the work or major portions thereof as
contemplated by the terms of the contract are  substantially  completed,
the  contractor  shall  submit  to  the  public owner and/or his agent a
requisition for payment of the remaining amount of the contract balance.
Upon receipt of such requisition the  public  owner  shall  approve  and
promptly pay the remaining amount of the contract balance less two times
the value of any remaining items to be completed and an amount necessary
to  satisfy  any claims, liens or judgments against the contractor which
have not been suitably discharged. As the remaining items  of  work  are
satisfactorily  completed  or corrected, the public owner shall promptly
pay, upon receipt of a requisition, for these remaining  items  less  an
amount  necessary  to satisfy any claims, liens or judgments against the
contractor which have not been suitably discharged.  Any  claims,  liens
and  judgments  referred to in this section shall pertain to the project
and shall be filed in  accordance  with  the  terms  of  the  applicable
contract and/or applicable laws.
  S  2.  This  act  shall take effect immediately and shall apply to all
contracts advertised or solicited for bid by a public owner on or  after
such effective date.