Legislative Update For The New York Contractor, Part 3 Of 3 Posted By: John Caravella, P.C.

Each year the New York State Legislature enacts dozens of new statutes, which alter various phases of construction. Currently, there are numerous proposed bills that may impact New York contractors and subcontractors in the next year.

Some of the significant proposed changes include new requirements for home improvement contractors, changes to construction contract enforcement, and changes to retainage procedures.

Bill A00934 "An act requiring home improvement contracts provide notice to owners if the contractor uses the services of a subcontractor."

Under this bill, home improvement contractors will be required to provide owners with written notice, prior to the commencement of any work, disclosing the name, address, telephone number and license number of any subcontractor that may perform any part of the work.

Bill S03183 An act to make Indemnification Agreements relating to construction contracts void as against public policy.

As by their nature Indemnification Agreements seek to have one party agree to be primarily liable for damages, which may be caused by the other, thereby causing one party to be held harmless. These contract provisions are in conflict with the greater public safety considerations that are advanced when parties are responsible for themselves.

Such examples of liability shifting will be prohibited in agreements relating to the construction, alteration, repair or maintenance of a building, structure, appurtenances and appliances, including moving and excavating.

Bill S03182 "An act to provide for laborers or materialmen on state public improvement projects to sue on the bond(s) required to be posted by the contractor or subcontractor."

This bill seeks to amend the state finance law to allow for laborers and materialmen to be included in the protection of bonds posted by the contractor or subcontractor on a state public improvement project until one year from acceptance of the completed project by the public owner.

Bill A08473 An act prohibiting the retention of any payment due and owing a material supplier for a construction project on public works projects.

This bill seeks to make several modifications to the state finance and general municipal laws, which would remove from retainage any payments due a supplier for supplies and materials incorporated into the project.

Once the contractor or subcontractor has accepted the materials, the supplier has essentially completed their scope of the work. These proposed modifications seek to clarify that concept as well as remove materialmen from current retainage laws.

Bill A01035 "An act to require the registration of home improvement contractors and for the creation of a home improvement trust fund."

In an additional step to help minimize the ability of unscrupulous home improvement contractors in certain portions of New York state, this bill will require home improvement contractors to register biennially with the Consumer Protection Board and either post bonds ranging from $10,000 through $50,000 or provide the payment of a $200 fee.

The home improvement trust fund is to provide consumers, upon receipt of a judgment, a faster and reliable means for receiving compensation for their troubles.

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