Relates to payment of public works contracts

Title of bill

An act to amend the state finance law, in relation to payment on public works contracts

1. PURPOSE :

The bill would require contractors to submit timely requisitions for payment of invoices for all work performed and materials provided on public work contracts by subcontractors and/or materialmen, and document in writing the reasons for rejection of such payment, in whole or part.

2. SUMMARY OF PROVISIONS :

Section 1 would require contractors to requisition for subcontractor work and materials provided on public works projects that is not rejected by the contractor, in whole or part. Contractors shall have not less than 30 days or more than 45 days following the contractor's receipt of invoices from the subcontractor and materialmen to accept or reject the subcontractor's or materialman's request for payment, in whole or part.

In the event that the contractor rejects such subcontractor's or materialman's request for payment, the rejection must be in writing and accompanied by: (a) reasoned elaboration for the rejection, in whole or part; and (b) a description of the work, materials and/or supporting documentation required to approve payment. The public owner shall approve and pay requisitions in accordance with the terms of its contract.

Section 2 of the bill would make it effective immediately.

3. JUSTIFICATION :

This bill is tailored to mitigate the issues created by contractors electing not to requisition for subcontractor and/or materialmen work that has been accepted by the contractor. It would thereby mitigate subcontractor payment issues on public work projects.

4. PRIOR LEGISLATIVE HISTORY :

None

5. FISCAL IMPLICATIONS :

None.

6. EFFECTIVE DATE : This Bill shall take effect immediately and shall apply to all contracts advertised or solicited for bid by a public owner on or after the effective date of this act.