News & Analysis as of

New York Subcontractors

Segal McCambridge

New York Labor Law Appellate Division Round-Up

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Issues involved with construction accidents in New York are very fact-specific, and it is important to obtain testimony and evidence of all aspects of the construction project to try and defeat a summary judgment motion....more

Littler

NYS Department of Health Seeks Bidders to Provide Statewide Fiscal Intermediary Services in Response to the State Budget

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As previously discussed, New York’s State Budget for fiscal year 2024-2025 includes legislation that significantly changes the state’s Consumer Directed Personal Assistance Program (CDPA Program). The CDPA Program, funded...more

Cozen O'Connor

New York Sets Maximum Construction Contract Retainage at 5% for Private Projects

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On November 17, 2023, Governor Kathy Hochul signed Senate Bill 3539, amending Section 756-a and Section 756-c of the New York General Business Law (more commonly referred to as the Prompt Payment Act) to set the maximum...more

Fox Rothschild LLP

New York Caps Retainage at 5% On Private Construction Projects, Permits Contractors to Submit Final Invoice Upon Substantial...

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New York has made changes to its Prompt Payment Act (N.Y. Gen. Bus. Law §756) Legislation, which Gov. Kathy Hochul signed into law on November 17, 2023, provides that: • retainage on private construction projects is capped...more

Cole Schotz

New York Amends Its Law on Withholding of Retainage and Final Invoicing on Private Construction Projects

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On November 17, 2023, Governor Hochul signed a bill placing significant restrictions on the amount of retainage that can be withheld from contractors and subcontractors, and permitting the earlier submission of final billing...more

Harris Beach PLLC

New York Changes Law on Retainage Payments for Private Development Projects

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A newly-enacted amendment to the New York General Business Law is designed to reduce delays in final payments to contractors, limit the amount of the contract sum (“retainage”) that can be withheld by and revises the...more

Smith Gambrell Russell

New York Amends “Prompt Payment Act” to Limit Retainage

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On November 17, 2023, Governor Kathy Hochul signed Senate Bill 3539, which amended Section 756-a and Section 756-c of the New York General Business Law (commonly known as the Prompt Payment Act), which applies to all private...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - August 2023

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Employees of a subcontractor were injured on a construction project, and they sued the owner and the general contractor. The subcontractor’s excess insurer, Mt. Hawley Insurance Co., disclaimed additional insured coverage to...more

White and Williams LLP

New York Preserves Subrogation Rights

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The insurer’s right of subrogation is equitable in nature, even if not based in contract. However, since the insurer steps into the shoes of its insured and is limited to the rights of its insured, an integral part of the...more

Robinson+Cole Construction Law Zone

New York Restrictions on Flow Through Provision in Subcontracts

Most subcontracts include a flow through provision (also called flow down and incorporation clauses) stating that the subcontractor and contractor are bound by the same obligations as set forth in the prime contract between...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - June 29, 2023.

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Second Circuit Finds That Subcontract Did Not Incorporate GC’s Obligation To Obtain Additional Insured Coverage For Owners And That GC’s Primary Policy Was Primary To GC’s Additional Insured Coverage Under Sub’s Umbrella...more

Lippes Mathias LLP

Increasing Government Scrutiny Requires Robust MWBE Compliance Programs to Avoid Criminal, Civil Investigations

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New York’s state contracts boast some of the most ambitious diversity goals in the nation, and are well recognized for their frequent utilization of Minority and/or Women-owned Business Enterprises, known as MWBEs, with a set...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - April 27 2023

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The insureds, a country club and motorcycle group, held an annual motorcycle rally. They were sued by two motorcycle riders who were struck by an automobile as the riders and automobile were entering the premises of the club...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - January 30 2023

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Southern District Refuses To Use Extrinsic Evidence “Bound Up With Merits” Of Underlying Action To Defeat Duty To Defend- 622 Third Avenue LLC filed a declaratory judgment action against Harleysville Worcester Insurance...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - July 2022

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Second Circuit Holds That Insurer Precluded From Relying On Exclusions Because Unreasonably Delayed Disclaiming While Basis Was, Or Should Have Been, Apparent- In December 2015, Luis Alberto was working on a construction...more

Jackson Lewis P.C.

New York Construction Wage Theft Law: Prime Contractors Responsible for Subcontractor’s Failures

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The scope for liability related to employee wage claims has changed dramatically for contractors and subcontractors operating in New York under a new law that shifts wage payment obligations to prime contractors....more

Smith Gambrell Russell

New York Introduces Joint and Several Liability for Prime Contractors and Subcontractors for Unpaid Wage Claims

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New York Governor Kathy Hochul recently signed into law Senate Bill S2766-C, which amends the New York Labor Law (NYLL) and General Business Law (GBL) in relation to actions for non-payment of wages, and importantly, creates...more

Cole Schotz

New York Wage Theft Law Promises Major Change for Contractors

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New York’s new wage theft law – expected to have a major impact on the construction industry state-wide – goes into effect on January 4, 2022 and will apply to contracts executed, modified, extended, or renewed from that date...more

Hahn Loeser & Parks LLP

New York Labor Law Creates Joint Liability for Construction Contractors

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On Labor Day, Governor Kathy Hochul signed into law an amendment to New York Labor Law that holds prime and general construction contractors jointly and severally liable for unpaid wages, benefits, and wage supplements owed...more

Fenwick & West LLP

COVID-19 Developments for Federal Contractors and New York Employers

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HERO Act Plans Remain In “Active” Status for New York State Employers On September 6, 2021, New York’s Commissioner of Health designated COVID-19 as an airborne infectious disease under the Health and Essential Rights Act...more

Rivkin Radler LLP

NY Law Now Holds GCs Liable for Subcontractors’ Labor Law and Wage Obligations

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On September 9, 2021, Governor Hochul signed into law a new wage protection statute which added a new section to the New York Labor Law. Section 198(e) holds construction contractors liable for all claims under Labor Law...more

Moritt Hock & Hamroff LLP

NYC’s Subcontractor Approval Process (RFAS): What Recourse Does A Subcontractor Have?

The New York City Procurement Policy Board Rules (“PPB Rules”) provides precious little in the way of guidance with respect to matters related to the approval of subcontractors by NYC agencies. There is no process for the...more

Moritt Hock & Hamroff LLP

New Law Will Address Abuse of "Substantial Completion" Schedule Milestone on New York Public Projects

As we write this alert, new legislation is in its final stages of becoming law in New York State, which will address the longstanding abuse of the substantial completion schedule milestone in project closeout. Few words...more

Cole Schotz

The Difficulty Of Cancelling An Untimely New York Mechanic’s Lien

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As discussed , New York Lien Law § 19(6) provides a procedure for an expedited legal action seeking summary discharge (cancellation) of a mechanic’s lien. However, summary discharge is only available where there is a “facial...more

Moritt Hock & Hamroff LLP

Post-Covid Projects “Restarts”: Contractors Caught Between A Rock & A Hard Place?

Even after New York Governor Andrew M. Cuomo’s New York “PAUSE” program was replaced by the New York “FORWARD” program and its related executive orders (permitting both essential and non-essential projects to resume), many...more

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