Legislature Bans Contract Provision Requiring Subcontractor to Exhaust All Remedies Before Filing Bond Claim

The New York State Legislature recently amended Section 5-322.1 of the General Obligations Law to declare that any contract provision which requires a subcontractor to exhaust all other remedies prior to filing a claim on a payment bond is void and unenforceable.

Vincent T. Pallaci is a New York construction lawyer.  He can be reached at vtp@nyconstructionlaw.com