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ARTICLE · 18 OCTOBER 2021

NY Prompt Pay Act For Construction Contractors

Mound Cotton Wollan & Greengrass
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The New York Law Journal published "NY Prompt Pay Act for Construction Contractors," written by partner Barry Temkin and coauthor Ken Eccleston, on August 10, 2021.

United StatesReal Estate and Construction
Barry Temkin
Barry Temkin

The New York Law Journal published "NY Prompt Pay Act for Construction Contractors," written by partner Barry Temkin and coauthor Ken Eccleston, on August 10, 2021.

This article provides an in-depth discussion of New York's Prompt Pay Act, enacted in 2002 to promote business in New York by attempting to avoid undue delays of payment to contractors and subcontractors.

In 2002, the New York Legislature passed the Prompt Pay Act, whose stated purpose is to promote timely payment to construction industry contractors and subcontractors. (N.Y. Gen. Bus. Law §756-a (McKinney 2009)). The Prompt Pay Act applies to "all contracts exceeding $150,000 to construct, reconstruct, alter, maintain, move or demolish any building, structure or improvement, or otherwise excavate, develop or improve land within New York." (N.Y. Gen. Bus. Law §756 (McKinney 2009)).

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