New York Public Payment Bonds: Completion and Acceptance Matter

Reviewed September 7, 2026.

This article originally reported a 2011 amendment. The current text of State Finance Law § 137(4)(b) generally bars a statutory payment-bond action brought more than one year after the public improvement has been completed and accepted by the public owner, except as provided in Labor Law § 220-g.

Completion alone and a claimant's last day on the job are not interchangeable with this statutory trigger. Obtain the agency's completion and acceptance records, identify what improvement the bond covers, and record the applicable suit deadline.

Earlier notice obligations still apply

The completion-and-acceptance rule does not eliminate § 137(3)'s separate notice requirements. Certain claimants with a direct contract with a subcontractor but no express or implied contract with the bonded contractor must give the prescribed notice within 120 days after their last covered labor or materials. A claimant should not wait for project acceptance to investigate that obligation.

Confirm whether the bond is statutory, private, federal or otherwise governed by different terms. Sending a demand, negotiating with a surety or filing a lien should not be assumed to extend the bond-action deadline.

Kushnick Pallaci PLLC assists clients throughout New York with public payment-bond claims. Contact 631-752-7100 or vtp@kushnicklaw.com.

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