N.Y. Lien Law § 5

§ 5. Liens under contracts for public improvements. A person\nperforming labor for or furnishing materials to a contractor, his or her\nsubcontractor or legal representative, for the construction or\ndemolition of a public improvement pursuant to a contract by such\ncontractor with the state or a public corporation, and any trust fund to\nwhich benefits and wage supplements are due or payable for the benefit\nof such person performing labor, shall have a lien for the principal and\ninterest of the value or agreed price of such labor, including benefits\nand wage supplements due or payable for the benefit of any person\nperforming labor, or materials upon the moneys of the state or of such\ncorporation applicable to the construction or demolition of such\nimprovement, to the extent of the amount due or to become due on such\ncontract, and under a judgment of the court of claims awarded to the\ncontractor for damages arising from the breach of such contract by the\nstate, or awarded for furnishing labor or materials not contemplated by\nthe provisions of said contract, upon filing a notice of lien as\nprescribed in this article, except as hereinafter in this article\nprovided. Where no public fund has been established for the financing of\na public improvement with estimated cost in excess of two hundred fifty\nthousand dollars, the chief financial officer of the public owner shall\nrequire the private entity for whom the public improvement is being made\nto post, or cause to be posted, a bond or other form of undertaking\nguaranteeing prompt payment of moneys due to the contractor, his or her\nsubcontractors and to all persons furnishing labor or materials to the\ncontractor or his or her subcontractors in the prosecution of the work\non the public improvement.\n