New York Senate Bill S4840: Surety Bond Requirements for Hybrid Projects
New York Senate Bill S4840 introduces new requirements for surety bonding on hybrid public-private construction projects. These projects—often a mix of public funding and private development—previously operated with fewer standardized payment protections for subcontractors and suppliers. Under the new bill, contractors and subcontractors must secure surety bonds to ensure payment security where no public funds have been formally established.
The goal is to close a longstanding gap in protection. On fully public projects, payment bonds are already required under public construction laws. But hybrid models have fallen into a gray area. Without bonds, subcontractors on these jobs risk non-payment if a general contractor defaults or funding falls through. S4840 aims to extend the same security found in public jobs to these hybrid efforts, protecting workers and vendors from financial harm.
This change is especially relevant as New York—and many other states—expand infrastructure development through public-private partnerships (P3s). For contractors, it’s critical to understand the implications of this bill: bonding may now be a mandatory cost of doing business in certain hybrid projects. Staying compliant ensures project eligibility and builds trust with stakeholders.
As always, consult your bonding agent or legal counsel to stay up to date on compliance.
To read the full article, click here https://www.nysenate.gov/legislation/bills/2025/S4840
