New York S 10020: Increases the interest rate for late payments due on construction contracts; repealer

Bill Text

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S10020 Summary:

BILL NOS10020 

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SAME ASSAME AS A11223

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SPONSORRYAN C

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COSPNSR

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MLTSPNSR

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Amd §§756 & 756-b, rpld §756-e, Gen Bus L

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Increases the interest rate for late payments due on construction contracts from one to two percent; includes a change order as part of the definition of construction contract; defines change order; repeals exceptions for lower Manhattan construction contracts.

Go to top S10020 Actions:

BILL NOS10020 

&nbsp

04/22/2026REFERRED TO CONSUMER PROTECTION

Go to topS10020 Committee&nbspVotes:

Go to topS10020 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS10020 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 10020

 IN SENATE

 April 22, 2026
 ___________

 Introduced by Sen. C. RYAN -- read twice and ordered printed, and when
 printed to be committed to the Committee on Consumer Protection

 AN ACT to amend the general business law, in relation to increasing the
 interest rate for late payments due on construction contracts; and to
 repeal section 756-e of the general business law, relating to
 exceptions for construction contracts in lower Manhattan

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Subdivision 1 of section 756 of the general business law,
 2 as amended by chapter 417 of the laws of 2009, is amended and a new
 3 subdivision 7 is added to read as follows:
 4 1. "Construction contract" means a written or oral agreement, includ-
 5 ing a change order to a written or oral agreement, for the construction,
 6 reconstruction, alteration, maintenance, moving or demolition of any
 7 building, structure or improvement, or relating to the excavation of or
 8 other development or improvement to land, and where the aggregate cost
 9 of the construction project including all labor, services, materials and
 10 equipment to be furnished, equals or exceeds one hundred fifty thousand
 11 dollars. For the purposes of this article a construction contract shall
 12 not include any such contract made and awarded by the state, any public
 13 department, any public benefit corporation, any public corporation or
 14 official thereof, or a municipal corporation or official thereof for
 15 construction, reconstruction, alteration, repair, maintenance, moving or
 16 demolition of any public works project nor any contract with a contrac-
 17 tor or subcontractor which is part of such project; or any such contract
 18 the purpose of which is the construction, reconstruction, alteration,
 19 repair, maintenance, moving or demolition of an individual one, two or
 20 three family residential dwelling or a residential tract development of
 21 one hundred or less one or two family dwellings, or any residential
 22 construction project where the aggregate size of such project is four
 23 thousand five hundred square feet or less, or any residential project of
 24 fewer than seventy-five units which receives financial assistance from
 25 the federal government, the state or a municipal entity designed for

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD15537-01-6

 S. 10020 2

 1 households earning an average of one hundred twenty-five percent of the
 2 housing and urban development agency area median income.
 3 7. "Change order" means an amendment or alteration to an existing
 4 construction contract that modifies the original contract terms with
 5 respect to the scope of work, project timeline or contract amount agreed
 6 to by the parties thereto, or between a contractor and a subcontractor.
 7 A change order may modify provisions relating to the scope of the work
 8 to be performed, including but not limited to additional work to be
 9 performed, or removal of work to be performed, a cost adjustment whether
 10 it increases or decreases the contract price, a schedule adjustment to
 11 the timeline agreed to in the initial contract for the completion of
 12 work to be performed, or any other changes to the original contract
 13 necessitated by conditions unforeseen at the time of the execution of
 14 the contract.
 15 § 2. Paragraph (a) of subdivision 1 of section 756-b of