Four New York State trade associations representing heavy-construction contractors are suing the state over Gov. David Paterson’s announcement in March that the New York Dept. of Transportation would halt payments on all capital construction projects not funded by federal stimulus dollars.
The suit, filed on April 16 in state Supreme Court, alleges the state has violated construction contracts with hundreds of contractors on highway and bridge jobs by requiring them either to continue working without payment or to stop altogether. The suit claims that any firms that stop work could be charged with breach of contract, jeopardizing their chance to bid on future state jobs.