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 disclosure requirements for contractors, changes to construction contract enforcement and changes relating to subcontractor liens on residential properties.
1. Bill A00105 €An act to address continuing problems of consumers hiring unscrupulous contractors that improperly build new homes, construct home additions or other improvements to residential properties.€
This bill proposed to make various changes and alterations to the General Business Law and the Lien Law to protect consumers from having liens filed from subcontractors when the owners have already paid the contractor for the sub's work on the property. Specifically this bill is intended to protect elderly or otherwise vulnerable homeowners from growing unscrupulous contractor activities in portions of New York State.
2. Bill A02253 €An act for the licensing of general contractors in New York City.€
This bill proposes to establish an additional Article to the General City Law to provide for the licensing of general contractors and permitting other cities to enact a local law doing the same.
This bill further provides a definition for the term €contractor,€ provides for a misdemeanor criminal violation for the advertising without a license, the assessing of fines for violations of these sections, including potential forfeiture of property. Additionally, contractors under this bill will now be charged with providing homeowners disclosure of the homeowners' rights prior to signing any contracts for the work.
3. 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.€
4. Bill A08473 €An act prohibiting the retention of any payment due and owing a material supplier for a construction project.€
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 this concept as well as remove material men from current retainage laws.
5. Bill A06023 €An act requiring background checks for employees of contractors under certain state contracts.€
This bill proposes to have employees of contractors under certain state contracts be required to undergo background checks where state employees would otherwise be required to undergo background checks.
1. Bill A00105 €An act to address continuing problems of consumers hiring unscrupulous contractors that improperly build new homes, construct home additions or other improvements to residential properties.€
This bill proposed to make various changes and alterations to the General Business Law and the Lien Law to protect consumers from having liens filed from subcontractors when the owners have already paid the contractor for the sub's work on the property. Specifically this bill is intended to protect elderly or otherwise vulnerable homeowners from growing unscrupulous contractor activities in portions of New York State.
2. Bill A02253 €An act for the licensing of general contractors in New York City.€
This bill proposes to establish an additional Article to the General City Law to provide for the licensing of general contractors and permitting other cities to enact a local law doing the same.
This bill further provides a definition for the term €contractor,€ provides for a misdemeanor criminal violation for the advertising without a license, the assessing of fines for violations of these sections, including potential forfeiture of property. Additionally, contractors under this bill will now be charged with providing homeowners disclosure of the homeowners' rights prior to signing any contracts for the work.
3. 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.€
4. Bill A08473 €An act prohibiting the retention of any payment due and owing a material supplier for a construction project.€
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 this concept as well as remove material men from current retainage laws.
5. Bill A06023 €An act requiring background checks for employees of contractors under certain state contracts.€
This bill proposes to have employees of contractors under certain state contracts be required to undergo background checks where state employees would otherwise be required to undergo background checks.
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