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Sponsors
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History
- Referred to judiciary
- Delivered to assembly
- Passed senateVote 56–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.625
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to the unenforceability of a contract clause requiring a contractor or subcontractor to continue unapproved or disputed work
In Assembly Committee · Judiciary · Sponsor Michael Cusick
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6057
Title of bill
An act to amend the general obligations law, in relation to the unenforceability of a contract clause requiring a contractor or subcontractor to continue unapproved or disputed work
Purpose or general idea of bill
To forbid agreements in construction contracts which require contractors or subcontractors to commence or continue unapproved or disputed work.
Summary of specific provisions
Section 5-322.1 of the General Obligations Law is amended to declare void and unenforceable construction contract provisions which require contractors or subcontractors to commence or continue unapproved or disputed work.
Justification
Contract clauses which require subcontractors to commence or continue work on a project notwithstanding that the work is in dispute or not yet approved by the owner puts the subcontractor at risk of not being paid for the work he or she completes. These clauses are found in many construction contracts and are the cause of unnecessary and costly litigation and arbitration. This bill endeavors to cure this problem by making such clauses void and unenforceable. Contractors and subcontractors who refuse to commence or continue , unapproved or disputed work will no longer be liable for delay damages due to their refusal. The bill will also provide an incentive for owners to settle disputes and process change orders.
Prior legislative history
New bill.
Fiscal implications
None.
Effective date
This act shall take effect immediately and shall apply to all contracts executed on and after the effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.