Reviewed September 7, 2026.
Historical status corrected: The bill described in this article is no longer awaiting the Governor’s signature. A5022/S3179 became Chapter 367 of the Laws of 2011 on August 3, 2011. See the official bill history.
The resulting provision remains in Lien Law § 10: a notice of lien for retainage may be filed within 90 days after the retainage was due to be released.
This protection addresses retainage. It does not permit a contractor to postpone every unpaid progress-payment or extra-work claim until retainage becomes due. Determine the release date under the applicable agreement and law and maintain separate calculations for retainage and other balances.
The ordinary private-improvement filing periods are generally eight months, with a four-month rule for single-family dwellings and statutory exceptions. The four-month period is measured in calendar months, not automatically 120 days. Service, proof and later enforcement deadlines remain separate.
Before accepting final payment, signing a release or waiting for project closeout, reconcile the remaining balance and preserve the relevant lien and contract rights.
Kushnick Pallaci PLLC assists clients throughout New York with New York mechanic’s lien rights. Contact 631-752-7100 or vtp@kushnicklaw.com.
Attorney Advertising. General information, not legal advice.
Hi, Mr. Pallaci! I am a paralegal at a law firm in upstate New York. We have filed a mechanics lien for labor and materials on a multi-unit residential project which is now finished, but the surety company is telling us that they will pay off the lien, minus a 10% retainage fee. Is it proper for them to do this? If we agree, what security do we have that the retainage fee will be paid later? Thanks for your advice. Sincerely, Steve Cobb
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