New York Prompt Payment Act

What is the New York Prompt Payment Act?

The New York Prompt Payment Act (General Business Law Article 35-E and related public provisions) sets deadlines for paying approved construction invoices on many private and public projects.

The Act aims to reduce long payment float down the contract chain. It works alongside, not instead of, mechanic's lien rights.

Private projects

On qualifying private contracts, owners must pay contractors within a set period after receiving a proper invoice when work has been accepted. Contractors must pay subcontractors within defined timelines after receiving payment from the owner.

When an owner withholds payment, the Act requires a written explanation within specified timeframes for many disputes.

Public projects

Public owners face separate prompt payment rules with interest on late undisputed amounts. Public work also involves retainage, bonding, and procurement requirements that affect cash flow.

Undisputed vs disputed amounts

Prompt payment applies most clearly to undisputed balances. Document:

• Approved schedule of values lines
• Signed change orders
• Inspection sign-offs and delivery records

Vague billing makes "undisputed" harder to prove.

On the job

Submit invoices that match the contract format. The payment clock depends on proper billing.

Respond in writing to withhold notices. Silence can cost you interest and negotiating room.

Calendar lien deadlines separately. Prompt payment pressure and lien filing are different tracks.

Note

This is general info, not legal advice. New York payment rules depend on project type, contract language, and legislative updates. Consult a New York construction lawyer for project-specific guidance.