New york construction law manual 2d

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Author s : Robert A. Sarah B. Catherine M. Product details: Brand: Lawyers Cooperative Publishing. Publication Frequency: Updated as changes in the law dictate. Free update period with subscription: 90 days details. Can we help? Contact Us Call New Edition. Once a business receives an invoice and supporting documentation, it has twelve business days to approve or disapprove it, and it has thirty days to pay. The PPA provides for three remedies for contractors or subcontractors who are not timely paid.

If the payment is delayed beyond the thirty day period, the contractor or subcontractor should receive interest at one percent per month. Second, the contractor or subcontractor may suspend performance subject to written notice.

Because it was only addressing the specific issues raised by the dispute before him, the Court did not mention other salient provisions of the PPA. For example, the thirty day time frame mentioned by the Court is not as clear-cut as one might assume. Contractors v. Aetna Cas. He cited two New York appellate opinions which both held that, even when a defendant missed the twelve day deadline in the statute, the defendant could present evidence to a trial of fact which would justify the application of deductions to the invoices in question.

Global Precast, Inc. Thus, the seemingly strict language of the PPA would not be applied by the Court to this matter. Some of the remaining claims, which are not the subject of this posting, survived motion practice and the Court directed a jury trial to commence on May Prior to trial the parties entered into a consent judgment in favor of Plaintiff.

Until courts are willing to apply a strict reading of the PPA, its impact on payment disputes between parties in the construction industry will be less than anticipated when the PPA was first enacted. Instead, the parties need to be vigilant in embracing their contractual and common law rights to payment.