N.Y. Gen. Bus. Law § 756-c
Retention
Redline — January 1, 2015 → current.View current text →
Current — January 1, 2024
As of January 1, 2015
§ 756-c. Retention. By mutual agreement of the relevant parties an\nowner may retain a reasonable amount of the contract sum as retainage. A\ncontractor or subcontractor may also retain a reasonable amount for\nretainage so long as the amount does not exceed the actual percentage\nretained by the owner. Retainage shall be released by the owner to the\ncontractor no later than thirty days after the final approval of the\nwork under a construction contract. In the event that an owner fails to\nrelease retainage as required by this article, or the contractor or\nsubcontractor fails to release a proportionate amount of retainage to\nthe relevant parties after receipt of retainage from the owner, the\nowner, contractor, or subcontractor, as the case may be, shall be\nsubject to the payment of interest at the rate of one percent per month\non the date retention was due and owing.\n
§ 756-c. Retention. By mutual agreement of the relevant parties an\nowner may retain no more than five per centum of the contract sum as\nretainage. A contractor or subcontractor may also retain no more than\nfive per centum for retainage and in no case shall retainage exceed the\nactual percentage retained by the owner. Retainage shall be released by\nthe owner to the contractor no later than thirty days after the final\napproval of the work under a construction contract. In the event that an\nowner fails to release retainage as required by this article, or the\ncontractor or subcontractor fails to release a proportionate amount of\nretainage to the relevant parties after receipt of retainage from the\nowner, the owner, contractor, or subcontractor, as the case may be,\nshall be subject to the payment of interest at the rate of one percent\nper month on the date retention was due and owing.\n
Official source: NYS Open Legislation (New York State Senate). Reproduced from public-domain New York statutes; confirm against the official source for the current text. Not legal advice.