New York prompt payment

Who and what this applies to

Covered private contracts, state-agency payments and covered local public works.

Thresholds and scope

Private coverage uses the Article 35-E threshold/exclusions; state and municipal deadlines have separate conditions.

The rules

• Private Article 35-E coverage starts at $150,000 aggregate project cost and excludes public work; 1–3-family dwellings; tracts of ≤100 one/two-family dwellings; residential projects ≤4,500 square feet; and qualifying publicly assisted residential projects under 75 units for households averaging 125% of HUD area median income. Source
• The private statutory invoice-review rule is 12 business days with required documentation; the contract generally controls except where the article prohibits variation. Written disapproval must identify the statutory grounds. Source
• Private owner payment is due within 30 days after approval; qualifying lender-contingent payment is due seven days after good funds, subject to section 756-d. Compliant downstream work is paid within seven days after good funds with required documents/waivers, subject to permitted withholding. Source
• Contract provisions changing the statutory payment rules specified in section 757(4) are void. Source
• Private late-payment interest is 1% per month or fraction, or the higher contractual rate. Source
• State-agency payment is generally due 30 calendar days excluding legal holidays after invoice receipt; qualifying small businesses using electronic invoices/requesting expedited treatment use 15 days, and highway final payments use 75. Statutory defects, inspection/audit, appropriation and compliance conditions can extend the date. Source
• Outside NYC, covered local public owners pay approvable requisitions within 30 days excluding legal holidays, or 45 where elected-official approval is required. Qualifying delayed state funding moves payment to ten days after its receipt; federal preemption applies. Source
• Covered state/public-owner contractors pass corresponding payments within seven calendar days, subject to statutory retention and unresolved claims/liens/judgments; lower tiers follow the same rule. Source

Primary sources

• N.Y. General Business Law §756(1)
• N.Y. General Business Law §756-a(2)
• N.Y. General Business Law §756-a(3)
• N.Y. General Business Law §757(4)
• N.Y. General Business Law §756-b(1)
• N.Y. State Finance Law §179-f(2)-(3), (6)
• N.Y. General Municipal Law §106-b(1)(a), (d), (3)
• N.Y. State Finance Law §139-f(2)

Sources reviewed 2026-09-30. This guide covers the projects and rules stated above.

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