Suspending Construction Work for Nonpayment: Notice Comes First

Reviewed September 7, 2026.

New York's Prompt Payment Act protects qualifying suspension rights on covered private projects. It is not a general authorization to stop work whenever an invoice is disputed. Check the current coverage requirements: the project threshold is an aggregate cost of at least $150,000, with public-project and specified residential exclusions.

Under General Business Law § 756-b, the applicable suspension process requires ten calendar days' written notice and an opportunity to cure. A subcontractor must notify both the owner and contractor. Confirm the statutory grounds, unpaid undisputed amount, notice contents and required delivery method before suspending.

Section 757 makes contractual provisions that defeat the protected suspension right unenforceable. It does not remove the statutory prerequisites. Review contract remedies as well when the Act does not cover the project.

Preserve the project record

Save invoices, approvals, objections, proof of notice delivery and the schedule impact. Address site protection, equipment and restarting work. The statute calls for negotiation of documented actual remobilization costs after a compliant suspension; it does not promise every requested cost. Obtain advice before stopping work so that a payment dispute does not become a termination or abandonment claim.

Kushnick Pallaci PLLC assists clients throughout New York with construction contract review. Contact 631-752-7100 or vtp@kushnicklaw.com.

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