Prohibits the retention of any amount of payment due and owing for materials delivered and accepted for a public or private construction project.
Summary
Bill A02212 seeks to amend the state finance law and general municipal law to ensure that full payment is made for materials delivered and accepted for public work projects. It prohibits the retention of any payment due to material suppliers for construction projects, thereby mandating that contractors pay suppliers promptly upon receipt of payment from public owners. The bill aims to enhance cash flow for subcontractors and material suppliers, ensuring they receive timely compensation for their contributions to construction projects.
Impact
If enacted, this bill will significantly alter the payment structure within public and private construction projects in New York. It will eliminate the ability of public owners and contractors to withhold payments for materials that have been delivered and accepted, which could lead to improved financial stability for suppliers and subcontractors. Additionally, it will amend the existing laws regarding retainage, ensuring that no payments for accepted materials can be retained, thus potentially increasing the competitiveness and efficiency of construction projects.
Sentiment
The sentiment surrounding Bill A02212 appears to be generally favorable, as indicated by the voting history. The bill has passed through several committees with a majority in favor, culminating in a strong final passage vote in the Assembly. Supporters argue that it will protect small businesses and ensure fair payment practices, while some opposition may stem from concerns about the financial implications for public owners and contractors.
Contention
Notable points of contention include concerns from some contractors regarding the financial burden this bill may impose on them, particularly in terms of cash flow management when dealing with large projects. Some stakeholders argue that retaining a portion of payments is necessary to ensure that contractors fulfill their obligations. Conversely, supporters of the bill emphasize the need for timely payments to subcontractors and suppliers to maintain industry standards and support small businesses.
Same As
Prohibits the retention of any amount of payment due and owing for materials delivered and accepted for a public or private construction project.
State management: purchasing; awarding contracts to entities that donate or contribute to certain political candidates or committees; prohibit. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding sec. 264b.