N.Y. General Business Law Section 757
Void provisions


The following provisions of construction contracts shall be void and unenforceable:

1.

A provision, covenant, clause or understanding in, collateral to or affecting a construction contract, with the exception of a contract with a material supplier, that makes the contract subject to the laws of another state or that requires any litigation, arbitration or other dispute resolution proceeding arising from the contract to be conducted in another state.

2.

A provision, covenant, clause or understanding in, collateral to or affecting a construction contract stating that a party to the contract cannot suspend performance under the contract if another party to the contract fails to make prompt payments under the contract.

3.

A provision, covenant, clause or understanding in, collateral to or affecting a construction contract stating that expedited arbitration as expressly provided for and in the manner established by § 756-B (Remedies)section seven hundred fifty-six-b of this article is unavailable to one or both parties.

4.

A provision, covenant, clause or understanding in collateral to or affecting a construction contract establishing payment provisions which differ from those established in subdivision three of section seven hundred fifty-six-a and section seven hundred fifty-six-b as applicable.

5.

A provision, covenant, clause or understanding in, collateral to or affecting a construction contract requiring retainage as expressly provided for by § 756-C (Retention)section seven hundred fifty-six-c of this article in an amount exceeding five percent of the contract sum.

Source: Section 757 — Void provisions, https://www.­nysenate.­gov/legislation/laws/GBS/757 (updated Dec. 26, 2025; accessed Jan. 3, 2026).

Verified:
Jan. 3, 2026

Last modified:
Dec. 26, 2025

§ 757. Void provisions's source at nysenate​.gov

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