NY State Senate Bill 2025-S10020

Current Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 22, 2026	referred to consumer protection

2025-S10020 (ACTIVE) - Details

See Assembly Version of this Bill:: A11223
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §§756 & 756-b, rpld §756-e, Gen Bus L

2025-S10020 (ACTIVE) - Summary

Increases the interest rate for late payments due on construction contracts from one to two percent; includes a change order as part of the definition of construction contract; defines change order; repeals exceptions for lower Manhattan construction contracts.

2025-S10020 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S10020

SPONSOR: RYAN C
 
TITLE OF BILL:

An act to amend the general business law, in relation to increasing the
interest rate for late payments due on construction contracts; and to
repeal section 756-e of the general business law, relating to exceptions
for construction contracts in lower Manhattan

 
PURPOSE OR GENERAL IDEA OF BILL:

The bill seeks to revise New York's statutory framework governing
construction contracts by expanding definitional coverage, increasing
statutory interest penalties for late payments, and repealing existing
provisions under Section 756-e of the General Business Law.  The objec-
tive is to strengthen payment protections and enforcement mechanisms
within construction contracting relationships.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends the general business law to include change

orders within the definition of construction contracts, and defines
change orders as any modification to scope, cost, schedule, or other
contract terms arising from unforeseen conditions or agreed amendments
between contracting parties.

Section 2 of the bill amends the general business law to increase statu-
tory interest for late payments from 1% to 2% per month (or higher if
contractually agreed), accruing from the day after the payment due date.

Section 3 of the bill amends the general business law to repeal GBL §
756-e, removing the existing statutory provision in its entirety.

Section 4 of the bill contains the enacting clause, and ensures
provisions apply prospectively to all construction contracts and change
orders entered into 90 days after enactment.

 
JUSTIFICATION:

New York's prompt payment framework under Article 35-E of the General
Business Law has not kept pace with how modern construction projects are
actually delivered, particularly with respect to change orders and
evolving project scope. While existing law establishes baseline payment
timelines, it does not adequately define or account for the central role
that change orders play in active project management, nor does it suffi-
ciently deter delayed payment practices in the private market. The
result is a persistent gap in enforcement, where contractors and subcon-
tractors routinely perform additional or modified work without timely
compensation, creating cash flow strain, increasing financing costs, and
incentivizing dispute-driven project administration.

This legislation modernizes and refines the statutory framework by
clearly incorporating change orders into the definition of construction
contracts, ensuring that payment protections on private construction
projects apply to the full scope of work actually performed. It
strengthens compliance by increasing the statutory interest rate on late
payments, creating a more meaningful economic incentive for timely
payment and aligning with commercial realities.  The repeal of Section
756-e eliminates outdated or redundant provisions, further streamlining
the statute. Collectively, these changes establish a more coherent,
enforceable, and balanced prompt payment regime that promotes fairness,
reduces disputes, and supports efficient project delivery across New
York's construction industry.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the State as this governs work on private construction only.

 
EFFECTIVE DATE:
This act shall take effect 90 days after it becomes law and shall apply
to all construction contracts and change orders entered into on or after
such date.

2025-S10020 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10020
 
                             I N  S E N A T E
 
                              April 22, 2026
                                ___________
 
 Introduced  by  Sen. C. RYAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general business law, in relation to increasing  the
   interest  rate for late payments due on construction contracts; and to
   repeal  section  756-e  of  the  general  business  law,  relating  to
   exceptions for construction contracts in lower Manhattan

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 756 of the general  business  law,
 as  amended  by  chapter  417  of the laws of 2009, is amended and a new
 subdivision 7 is added to read as follows:
   1. "Construction contract" means a written or oral agreement,  INCLUD-
 ING A CHANGE ORDER TO A WRITTEN OR ORAL AGREEMENT, for the construction,
 reconstruction,  alteration,  maintenance,  moving  or demolition of any
 building, structure or improvement, or relating to the excavation of  or
 other  development  or improvement to land, and where the aggregate cost
 of the construction project including all labor, services, materials and
 equipment to be furnished, equals or exceeds one hundred fifty  thousand
 dollars.  For the purposes of this article a construction contract shall
 not include any such contract made and awarded by the state, any  public
 department,  any  public  benefit corporation, any public corporation or
 official thereof, or a municipal corporation  or  official  thereof  for
 construction, reconstruction, alteration, repair, maintenance, moving or
 demolition  of any public works project nor any contract with a contrac-
 tor or subcontractor which is part of such project; or any such contract
 the purpose of which is the  construction,  reconstruction,  alteration,
 repair,  maintenance,  moving or demolition of an individual one, two or
 three family residential dwelling or a residential tract development  of
 one  hundred  or  less  one  or two family dwellings, or any residential
 construction project where the aggregate size of such  project  is  four
 thousand five hundred square feet or less, or any residential project of
 fewer  than  seventy-five units which receives financial assistance from
 the federal government, the state or a  municipal  entity  designed  for
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15537-01-6

 S. 10020                            2
 
 households  earning an average of one hundred twenty-five percent of the
 housing and urban development agency area median income.
   7.  "CHANGE  ORDER"  MEANS  AN  AMENDMENT OR ALTERATION TO AN EXISTING
 CONSTRUCTION CONTRACT THAT MODIFIES THE  ORIGINAL  CONTRACT  TERMS  WITH
 RESPECT TO THE SCOPE OF WORK, PROJECT TIMELINE OR CONTRACT AMOUNT AGREED
 TO  BY THE PARTIES THERETO, OR BETWEEN A CONTRACTOR AND A SUBCONTRACTOR.
 A CHANGE ORDER MAY MODIFY PROVISIONS RELATING TO THE SCOPE OF  THE  WORK
 TO  BE  PERFORMED,  INCLUDING  BUT  NOT LIMITED TO ADDITIONAL WORK TO BE
 PERFORMED, OR REMOVAL OF WORK TO BE PERFORMED, A COST ADJUSTMENT WHETHER
 IT INCREASES OR DECREASES THE CONTRACT PRICE, A SCHEDULE  ADJUSTMENT  TO
 THE  TIMELINE  AGREED  TO  IN THE INITIAL CONTRACT FOR THE COMPLETION OF
 WORK TO BE PERFORMED, OR ANY OTHER  CHANGES  TO  THE  ORIGINAL  CONTRACT
 NECESSITATED  BY  CONDITIONS  UNFORESEEN AT THE TIME OF THE EXECUTION OF
 THE CONTRACT.
   § 2. Paragraph (a) of subdivision 1 of section 756-b  of  the  general
 business  law, as amended by chapter 417 of the laws of 2009, is amended
 to read as follows:
   (a) If any interim or final payment to a contractor is delayed  beyond
 the  due  date  established  in  paragraph  (a)  of subdivision three of
 section seven hundred fifty-six-a of this article, the owner  shall  pay
 the  contractor  interest beginning on the next day at the rate of [one]
 TWO percent per month or fraction of a month on the unpaid  balance,  or
 at a higher rate consistent with the construction contract.
   § 3. Section 756-e of the general business law is REPEALED.
   §  4.  This  act shall take effect on the ninetieth day after it shall
 have become a law and shall apply  to  all  construction  contracts  and
 change  orders  to construction contracts entered into on and after such
 date.

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Senate Bill S10020

Sponsored By

Current Bill Status - In Senate Committee Consumer Protection Committee

Actions

2025-S10020 (ACTIVE) - Details

2025-S10020 (ACTIVE) - Summary

2025-S10020 (ACTIVE) - Sponsor Memo

2025-S10020 (ACTIVE) - Bill Text download pdf

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Sponsored By

Christopher J. Ryan

Current Bill Status - In Senate Committee Consumer Protection Committee

Actions

2025-S10020 (ACTIVE) - Details

2025-S10020 (ACTIVE) - Summary

2025-S10020 (ACTIVE) - Sponsor Memo

2025-S10020 (ACTIVE) - Bill Text download pdf

Comments