The Business Council of New York State, the state’s leading statewide business and industry association, supports this legislation that would define “substantial completion” for the purposes of requisition payments to contractors, subcontractors, and materials suppliers on construction contracts.
Once a public owner occupies a part or all of a substantially completed construction project it is in the best interests of the taxpayers, contractors, subcontractors, and materials suppliers to close out the project in a timely manner. Lack of a clear definition of “substantial completion” has led to a number of payment issues. These issues negatively impact all of the above mentioned construction interests. The delay to all involved causes financial constraints on the participants, draws out disputes, and goes against the bottom line (finances) of the project.
This bill merely defines the term substantial completion, thus freeing all involved from ambiguities. It sets the stage for any work to be done, and eradicates the uncertainty in the project thus providing for a set time for the project to end. By creating this procedure, it triggers the public owner to provide a final punch list to close out the project. Not later than 45 days after reaching substantial completion, the public owner shall submit a written list describing all the issues to be completed. This triggers a written list from the contractor to all subcontractors on what needs to be finished. This new time frame and definition adds certainty to the issue thus eliminating ambiguities.
For the above reasons, The Business Council supports this legislation and urges its passage.