New York has closed a loophole in its Prompt Payment Act, making any private construction contract term requiring retainage above 5% void and heightening compliance obligations for owners, contractors and subcontractors on projects over $150,000.
| less than a minute read
New York Further Tightens 2023 Retainage Law: 5% Cap on Retainage Cannot Be Increased in Private Construction Contracts


/Passle/6880addbd954bf894713d5af/SearchServiceImages/2026-10-05-17-16-21-912-6ac3db65936a86befc5df523.jpg)
/Passle/6880addbd954bf894713d5af/SearchServiceImages/2026-10-05-13-15-42-021-6ac3a2fe147a7b8e1aceede9.jpg)
/Passle/6880addbd954bf894713d5af/SearchServiceImages/2026-10-02-17-12-31-692-6abfe5ff7f63a687f5e4e75d.jpg)