Owner to Prime Contractor (Private): Owner shall approve an invoice within 12 days of receipt. Payment due 30 days after approval. If payment is contingent on lender approval, payment due within 7 days of receipt of the same.
Prime Contractor to Subcontractor (Private): 7 days after receipt of payment from owner.
Interest/Penalties (Private): Interest at a rate of 1% per month.
Owner to Prime Contractor (Public): 30 days after receipt of invoice. 15 days after receipt of invoice if contractor is a small business. Final payment on highway construction due within 75 days of invoice.
Prime Contractor to Subcontractor (Public): 7 days after receipt of payment from owner.
Interest/Penalties (Public): Interest at a rate of 1% per month.
Pay-If-Paid Permissible: No.
Special Notes: Contractor must disclose to subcontractors the due date for payments from the owner otherwise contractor is obligated to pay its subcontractors as if owner made timely payment even if it hasn’t done so.
Disclaimer: This information was published on July 1, 2020. Please contact Josh Levy, Eric Meier or Samantha Schacht for modifications made by New York since that date. Visit our 50-State Construction Law Map for information on other states.