"If the state had said it was freezing payments to all vendorsacross all industries, we would have accepted that," DeniseRichardson, managing director of the General ContractorsAssociation of New York, tells GlobeSt.com. "What bothers us isthat we were the industry that was singled out for this."

Paterson's order does not say that contractors must stop work onthe state-funded projects, only that they cannot expect to be paiduntil after the budget is finalized. The order, issued inaccordance with emergency legislation to keep the state governmentgoing temporarily, does not affect progress on projects fundedthrough the American Recovery and Reinvestment Act. Nor does ithalt payment for capital project expenses "incurred to addressemergency health and safety needs," according to a statement fromStanley Gee, acting state commissioner of transportation.

For the 506 projects statewide that are affected, the earliestthe funding spigot could be turned back on could be April 8, whenthe state legislature returns from its Easter/Passover recess.Failing that, action could come after April 14, when an emergencyspending appropriation expires. "Contractors are assessing thelikelihood of this problem continuing past the emergency fundingperiod," Richardson says.