Relates to void provisions in construction contracts

Latest action Dec 19, 2025

Voids provisions in construction contracts requiring retainage as expressly provided for by section seven hundred fifty-six-c of the general business law in an amount exceeding five percent of the contract sum.

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Where it stands

Signed into law.

Introduced
In committee
Up for a vote
Passed one chamber
Passed
Enacted

New York State Senate

Same as A5405, the matching bill in the Assembly.

Passed as A5405, the matching Assembly bill.

Amends the General Business Law.

Committee

Consumer Protection · New York State Senate

Purpose, from the sponsor's memo

To ensure compliance with the statutory requirement of a maximum five percent retainage in construction contracts.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

Vote: Floor vote
NY SenateJun 11, 2025Result: passedSenate vote on A5405, the matching Assembly bill.
(57) (2) (0) (4)
Vote: Committee vote · Consumer Protection
Senate Consumer ProtectionMay 28, 2025Result: passed
(7) (0) (0) (0)

Cosponsors

Albert A. Stirpe and Jonathan Jacobson

Democratic2

See the full list on nysenate.gov

The sponsor's argument

Why Christopher Ryan says this is needed

Chapter 657 of the Laws of 2023 brought private construction contracts in line with state construction contracts by limiting the amount of retainage that contractors and subcontractors can hold from other subcontractors to a maximum of five percent. While it was the clear intent of the legislature to ensure that qualifying projects capped retainage at five percent, there are still many construction projects in which general contractors offer retainage at 10% or higher. By updating the general business law to render any clause requiring retainage in excess of five percent as void, we will ensure compliance with the spir- it of the law.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Full history

Dec 19, 2025
Approval MEMO.36
APPROVAL MEMO.36
NY Assembly
Dec 19, 2025
Signed
SIGNED CHAP.654
NY Assembly
Dec 8, 2025
Sent to the executive
DELIVERED TO GOVERNOR
NY Assembly
Jun 11, 2025
3RD Reading CAL.1412
3RD READING CAL.1412
NY Senate
Jun 11, 2025
Passed a chamber
PASSED SENATE
NY Senate

Show full history (11 earlier events)

Jun 11, 2025
Substituted
SUBSTITUTED FOR S5655
NY Senate
Jun 4, 2025
Advanced to Third Reading
ADVANCED TO THIRD READING
NY Senate
May 29, 2025
2ND Report CAL.
2ND REPORT CAL.
NY Senate
May 28, 2025
1ST Report CAL.1412
1ST REPORT CAL.1412
NY Senate
May 22, 2025
Sent to the executive
DELIVERED TO SENATE
NY Assembly
May 22, 2025
Passed a chamber
PASSED ASSEMBLY
NY Assembly
May 22, 2025
Referred to committee
REFERRED TO CONSUMER PROTECTION
NY Senate
May 15, 2025
Advanced to Third Reading CAL.151
ADVANCED TO THIRD READING CAL.151
NY Assembly
May 13, 2025
Reported out of committee
REPORTED
NY Assembly
Feb 26, 2025
Referred to committee
REFERRED TO CONSUMER PROTECTION
NY Senate
Feb 13, 2025
Referred to committee
REFERRED TO ECONOMIC DEVELOPMENT
NY Assembly

About this record

Summary: The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.
Cosponsors: The list shows the cosponsors who are on Agora, A to Z. The official record may list more.
Party colors: Parties are shown in the same neutral colors.
Source: From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Oct 22, 2026. About our data

Read the record

Read on NY Senate (opens in a new tab) The official record on nysenate.gov.

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