Contractors sue state for stopping projects

A Long Island contractors organization has joined with three other construction groups in suing the state for stopping payments on hundreds of construction projects.

The Long Island Contractors Association, General Contractors Association, the Construction Industry Council and Associated General Contractors of New York State filed the suit Friday morning in State Supreme Court in Albany.

With the Legislature failing to pass a state budget in time, Gov. David A. Paterson announced last month that he was holding back payments on all construction projects not funded by federal stimulus dollars to keep the state running. The projects include the $27.9 million Route 110 interchange project on the Long Island Expressway.

Long Island Contractors Association executive director Marc Herbst said Paterson's "terribly misguided and not properly thought through" decision has placed an unfair burden on private contractors, who risk breaching contracts without state funding. He said many are struggling to get loans to continue paying for supplies and equipment.

Herbst said the problem has also increased the threat of layoffs for Long Island construction workers, who are already facing a 35 percent unemployment rate.

"The purpose of this lawsuit is to protect the actual construction firms and the safety of the public," Herbst said.

The court gave the state attorney general's office until April 26 to respond to the suit and scheduled a hearing for about two weeks from now.