§ 106-b. Payment on public work projects. Notwithstanding the\nprovisions of any other law to the contrary, all contracts made and\nawarded by the appropriate officer, board or agency of a political\nsubdivision or of any district therein, hereafter referred to as the\npublic owner, for construction, reconstruction or alteration of any\npublic work project shall provide for payment by the public owner to the\ncontractor and payment by the contractor to the subcontractor in\naccordance with the following:\n 1. Payment by public owners to contractors. (a) The contractor shall\nperiodically, in accordance with the terms of the contract, submit to\nthe public owner and/or his agent a requisition for a progress payment\nfor the work performed and/or materials furnished to the date of the\nrequisition less any amount previously paid to the contractor. The\npublic owner shall in accordance with the terms of the contract approve\nand promptly pay the requisition for the progress payment less an amount\nnecessary to satisfy any claims, liens or judgments against the\ncontractor which have not been suitably discharged and less any retained\namount as hereafter described. The public owner shall retain not more\nthan five per centum of each progress payment to the contractor except\nthat the public owner may retain in excess of five per centum but not\nmore than ten per centum of each progress payment to the contractor\nprovided that there are no requirements by the public owner for the\ncontractor to provide a performance bond and a labor and material bond\nboth in the full amount of the contract. The public owner shall pay,\nupon requisition from the contractor, for materials pertinent to the\nproject which have been delivered to the site or off-site by the\ncontractor and/or subcontractor and suitably stored and secured as\nrequired by the public owner and the contractor provided, the public\nowner may limit such payment to materials in short and/or critical\nsupply and materials specially fabricated for the project each as\ndefined in the contract. When the work or major portions thereof as\ncontemplated by the terms of the contract are substantially completed,\nthe contractor shall submit to the public owner and/or his agent a\nrequisition for payment of the remaining amount of the contract balance.\nUpon receipt of such requisition the public owner shall approve and\npromptly pay the remaining amount of the contract balance less two times\nthe value of any remaining items to be completed and an amount necessary\nto satisfy any claims, liens or judgments against the contractor which\nhave not been suitably discharged. As the remaining items of work are\nsatisfactorily completed or corrected, the public owner shall promptly\npay, upon receipt of a requisition, for these items less an amount\nnecessary to satisfy any claims, liens or judgments against the\ncontractor which have not been suitably discharged. Any claims, liens\nand judgments referred to in this section shall pertain to the project\nand shall be filed in accordance with the terms of the applicable\ncontract and/or applicable laws. Where the public owner is other than\nthe city of New York, the term "promptly pay" shall mean payment within\nthirty days, excluding legal holidays, of receipt of the requisition\nunless such requisition is not approvable in accordance with the terms\nof the contract. Notwithstanding the foregoing, where the public owner\nis other than the city of New York and is a municipal corporation which\nrequires an elected official to approve progress payments, "promptly\npay" shall mean payment within forty-five days, excluding legal\nholidays, of receipt of the requisition unless such requisition is not\napprovable in accordance with the terms of the contract.\n (b) Not later than forty-five business days after the date when the\nproject has reached substantial completion, as such term is defined in\nthe contract or as it is contemplated by the terms
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