New York A04905 amends the lien law to require a surety bond for contractors and subcontractors on public improvements where no public fund has been.

New York A04905 amends the lien law to mandate that a surety bond be posted by contractors and subcontractors on public improvements where no public fund has been established for the financing of the improvement. This surety bond must be issued by a surety licensed in New York or an irrevocable letter of credit, in an amount equal to the cost of the construction work. The bond guarantees prompt payment of moneys due to the contractor, subcontractors, and all persons furnishing labor or materials. This change applies to contracts entered into after the effective date of the act.

New York A04905 amends the lien law to require a surety bond for contractors and subcontractors on public improvements where no public fund has been.

New York A04905 amends the lien law to mandate that a surety bond be posted by contractors and subcontractors on public improvements where no public fund has been established for the financing of the improvement. This surety bond must be issued by a surety licensed in New York or an irrevocable letter of credit, in an amount equal to the cost of the construction work. The bond guarantees prompt payment of moneys due to the contractor, subcontractors, and all persons furnishing labor or materials. This change applies to contracts entered into after the effective date of the act.