A contractor takes a deposit and stops showing up. A new roof leaks the first time it rains. The general contractor gets paid, but the subcontractor does not. A mechanic’s lien lands on a property weeks before a closing. When a construction project goes wrong, you want a clear answer about where you stand and a plan to get the project, or the money, back on track.
That is what we do. Toporowski Law, PLLC is a litigation boutique based in Albany, New York, and construction disputes are part of our commercial litigation practice. We represent residential and commercial property owners, businesses that hired a contractor, contractors and subcontractors with payment disputes, developers, and HOA and condo boards with construction-defect claims. If you are looking for a construction attorney or construction lawyer in the Albany area who is ready to go to court when it is needed, we can help.
We have local roots and statewide reach. From our Albany home base across the Capital Region and the rest of New York, you work directly with founder Matthew A. Toporowski, an experienced litigator who stays personally involved from the first call to the final result. Below is a plain-English guide to the construction disputes we handle and the New York rules that can shape them. Every situation is different, so use it as a starting point and reach out for advice on your specific facts.
Construction Defects and Incomplete Work
When work is defective, departs from the plans, or is left unfinished, the starting point is the contract. In New York, an owner’s claim against a contractor for defective construction is rooted in the contract between them, whatever label is put on it. We represent owners and businesses pursuing contractors, contractors defending defect claims, and HOA and condo boards evaluating defect claims involving common areas.
The documents matter. Gather the contract, plans, change orders, invoices and proof of payment, inspection reports, photographs, and messages with the contractor. They show what was agreed, what was paid, and when the work stopped, which can matter for the deadline to sue.
Learn more: Do I Have a Breach of Contract Claim in New York?
Payment Disputes, Change Orders, and Delay Claims
Money disputes run in both directions. We represent contractors and subcontractors whose invoices or retainage go unpaid, and owners facing bills that climb past the contract price, change orders they never approved, or a project that runs months behind schedule.
These disputes turn on the paper. A construction contract can require written change orders, written notice of a claim within a set number of days, and specific steps before payment comes due, so check those deadlines early. We review the contract, change orders, payment applications, and project correspondence, then give you a straight answer about what you are owed or what you owe.
Mechanic’s Liens
A contractor, subcontractor, laborer, or supplier who improves real property with the consent or at the request of the owner (or the owner’s agent, contractor, or subcontractor) and is not paid can file a mechanic’s lien against the property. In New York, the lien generally must be filed within eight months after the last work or materials were furnished, or within four months for a single-family home, and a copy must be served on the owner. A lien lasts one year unless the lienor starts a foreclosure action and files a notice of pendency, or files an extension. A lien on a single-family home can be extended only by court order.
An owner facing an improper lien has options. It can serve a notice requiring the lienor to start a foreclosure action within a set time, at least 30 days, or show cause in court why the lien should not be canceled. The owner or contractor can bond the lien off the property with a bond equal to 110 percent of the lien amount, and a court can summarily discharge a lien that is defective on its face. If a court finds that a lienor willfully exaggerated the lien amount, the lien is void, and the lienor can be liable for damages that include reasonable attorney’s fees for securing the discharge. For contractors, New York voids an advance waiver of lien rights, though a written waiver given at or after payment is allowed.
Learn more: A Mechanic’s Lien Was Filed Against My New York Property — Now What?
Home Improvement Contracts in New York
New York’s home improvement law (General Business Law Article 36-A) sets rules for residential work such as remodeling, roofing, and additions when a home improvement contractor’s contract price is more than $500. A covered contract, and every change to it, must be in writing and signed by all parties. Required terms include the contractor’s contact and any license information, estimated start and completion dates, a description of the work, materials, and price, a mechanic’s lien notice, a schedule of any progress payments, and notice of the owner’s right to cancel until midnight of the third business day after signing. The owner must receive a copy signed by the contractor before any work is done.
The law also protects deposits. Payments a home improvement contractor receives before the work is substantially complete must be deposited within five business days in an escrow account at a bank or savings institution located in New York, unless the contractor instead gives the owner a bond, contract of indemnity, or irrevocable letter of credit guaranteeing the return or proper use of the money. An owner who was induced to sign by false or fraudulent written statements can recover damages plus a $500 penalty and reasonable attorney’s fees.
New Home Warranty Claims
If you bought a newly built home, New York’s housing merchant implied warranty (General Business Law Article 36-B) may protect you even if your contract is silent. It covers single-family houses and for-sale condo and co-op units in buildings of five stories or less. The warranty runs one year for defects from a failure to build the home in a skillful manner, two years for defects in installing the plumbing, electrical, heating, cooling, and ventilation systems, and six years for material defects, meaning actual damage to load-bearing parts that makes the home unsafe, unsanitary, or unlivable. The periods run from the earlier of the first owner’s closing or first occupancy, and later buyers are covered for the time that remains.
The statute sets firm deadlines. Written notice of a warranty claim must reach the builder before you sue and no later than 30 days after the warranty period ends, and the builder must be given a reasonable chance to inspect, test, and repair. A lawsuit generally must be started within one year after the warranty period ends or within four years after the warranty date, whichever is later. A builder can replace the implied warranty with a limited warranty, but only if the limited warranty meets statutory standards, and a limited warranty cannot require the owner to submit to binding arbitration.
Prompt Payment on Larger Private Projects
New York’s prompt payment law for private construction (General Business Law Article 35-E) applies to private construction contracts where the total project cost is $150,000 or more. It does not apply to public works, to work on an individual one-, two-, or three-family home, or to certain other residential projects. Where it applies, an owner generally must approve or disapprove an invoice within 12 business days after receiving it with the required documentation, and must pay an approved invoice within 30 days. A contractor generally must pay its subcontractors their share within seven days after receiving good funds.
Late payments can carry interest at one percent per month. A contractor or subcontractor not paid undisputed amounts on time can suspend work after at least ten calendar days’ written notice without being in breach, and disputes under the statute can go to expedited arbitration with the American Arbitration Association. For contracts signed on or after November 17, 2023, retainage is capped at five percent, and for contracts signed on or after December 19, 2025, a clause requiring more is void. The law also voids clauses in covered contracts that apply another state’s law or require the dispute to be heard in another state.
Construction Trust Funds Under the Lien Law
New York’s Lien Law treats money paid for a construction project as trust funds. Certain funds an owner receives for an improvement, such as building loan proceeds, and funds a contractor or subcontractor receives under its contract are held in trust for project costs, including payment of subcontractors, laborers, and suppliers. Those parties are trust beneficiaries whether or not they filed a lien.
When trust money is diverted, a beneficiary can sue to enforce the trust for all beneficiaries, including for damages against those who took part in the diversion. The action generally must be started within one year after the project is completed or, for a subcontractor or supplier, within one year after its final payment became due, whichever is later. Under the statute, misusing trust funds can also be larceny.
Arbitration Clauses in Construction Contracts
Some construction contracts require disputes to be decided in arbitration instead of court. Before filing anything, read the dispute-resolution clause: it can control where the case is heard, who decides it, and what steps come first, such as notice or mediation.
If you are served with a demand for arbitration or a notice of intention to arbitrate that warns you of the deadline, New York gives you 20 days to ask a court to stop the arbitration. Miss that window and you can lose the right to argue in court that you never agreed to arbitrate or that the claim is too old.
Learn more: Served With an Arbitration Demand You Never Agreed To? How to Stop the Clock While a Court Decides
Why Toporowski Law
You get an experienced attorney on your case from day one. Toporowski Law is led by founder Matthew A. Toporowski, a commercial litigator, former prosecutor, and former appellate law clerk. Matt litigates and tries cases in state and federal courts throughout New York, as well as in arbitration. He is admitted in New York.
Construction disputes are business disputes. They turn on contracts, payment records, and deadlines, the core of a commercial litigation practice. We represent both owners and contractors, so we look at your file the way the other side will. When a construction fight becomes a property fight, such as a lien clouding title before a sale, it overlaps with our real estate disputes practice.
What that means for you is direct access, fast responses, and litigation-ready advocacy without the overhead and layered billing of a large firm. You talk directly with the attorney handling your matter, and you always know who is working on your case. We are honest about your options, including when a negotiated resolution serves you better than a courtroom fight, and wherever your project is in New York, we are positioned to help.
Frequently Asked Questions
My contractor walked off the job. What should I do?
Start by documenting where things stand: photograph the work, gather the contract and payment records, and save every text and email. Check the contract’s termination, notice, and cure provisions before you hire someone else, because how you end the relationship can affect your claim. If you paid a deposit for home improvement work, New York generally requires the contractor to hold it in escrow or back it with a bond or letter of credit. Then have your documents reviewed so you understand what you can recover.
How long do I have to sue a contractor in New York?
For breach of contract, New York generally allows six years. For a claim against a contractor over defective construction, the clock generally starts when the contractor completes its actual physical work, not when you discover the problem, and repair work that is merely incidental to the original job generally does not restart it. Other deadlines can be shorter or different: a written contract can shorten the time to sue, new home warranty claims follow their own statutory periods, and mechanic’s liens and trust claims have their own time limits. If you think you have a claim, do not wait.
Someone filed a mechanic’s lien on my property. What do I do?
Get a copy of the lien and check who filed it, the amount claimed, the dates of the work, and when it was filed and served. A lien that was filed too late, not properly served, or overstated may be open to challenge, and the owner can bond the lien off the property or serve a notice requiring the lienor to sue. Unless it is enforced or extended, a lien expires after one year. If a sale or refinance is pending, act quickly.
Do I need a written contract for home improvement work in New York?
Yes, if New York’s home improvement law covers the work, which it does for residential work by a home improvement contractor where the contract price is more than $500. The contract and any change to it must be in writing and signed by all parties, with specific required terms, including notice of your three-day right to cancel. Keep a signed copy.
Talk to a Construction Dispute Attorney
If a contractor, an owner, a subcontractor, or a lien is standing between you and a finished project or the money you are owed, let’s talk. Schedule a consultation and we will review your contract and project documents and tell you where you stand. Toporowski Law serves clients from its Albany home base across the Capital Region, the Hudson Valley, and New York City.
Attorney Advertising. This website is for general information only and does not constitute legal advice or create an attorney-client relationship. Prior results do not guarantee a similar outcome. Toporowski Law, PLLC, 150 State Street, Albany, NY 12207.
From our blog: Handling a Mechanic’s Lien on Your NY Property · Do I Have a Breach of Contract Claim? · Stopping an Arbitration Demand
