The General Contractor’s Association (GCA) is working to seek to persuade the Governor to veto the materials retainage bill, Bill No. A796/S2931. The bill prohibits the retention of any amount of payment due and owing for materials delivered for a public or private construction project.
According to the GCA, retainage is a proven practice throughout the nation that acts as a form of insurance and collateral on construction projects to ensure that the materials delivered are installed and certified to meet the specified requirements for quality and performance. The bill will hurt business because it would excuse all materials regardless of type and cost. Exempting materials from retainage will increase the risk for public/private construction owners and would be liable for hidden material defects.
For more information on this topic you can visit the AGC Memorandum of Opposition.
Do you have a construction law issue that requires legal advice? The New York Construction Lawyers at Sullivan PC are here to help. With over 20 years of experience in construction litigation and construction law, we have become one of the leading New York City construction law firms in the area. Contact the New York City Construction Law Firm of Sullivan PC at 212-687-5900.