WINDSOR METAL FABRICATIONS, LTD., RESPONDENT, v. GENERAL ACCIDENT INSURANCE
  COMPANY OF AMERICA, APPELLANT.

    94 N.Y.2d 124 (1999).
    November 30, 1999

   2 No. 186

   (99 NY Int. 0162)
   Decided November 30, 1999
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   This opinion is uncorrected and subject to revision before publication
   in the New York Reports.
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   Armen Shahinian, for appellant.
   Sol Kodsi, for respondent.
   General Building Contractors of New York State, Inc.;
   Trataros Construction Inc.; Surety Association of America et al.,
   amici curiae.

   BELLACOSA, J.:

   This case presents the puzzle of when the one year limitation period
   for suing a surety on a public improvementconstruction bond begins to
   run, within the meaning of State Finance Law § 137(4)(b). Also
   implicated is whether contractual provisions in a subcontract can
   effectively toll the statutory time period.

   We conclude that the one year period starts to be counted as of the
   time when a subcontractor has demanded final payment from the general
   contractor with whom it contracted, and ninety days have passed since
   the subcontractor ceased work on the project. This timeframe may not
   be extended or overridden by any provisions of the subcontract.

                                     I.

   This controversy arises out of a public improvement contract for the
   construction of a health care facility at Greenhaven Correctional
   Facility. Eberhard Construction Company, general contractor, held the
   prime contract with the State of New York. Plaintiff Windsor
   subcontracted with Eberhard to provide and erect all structural steel
   for the project, at a cost of $404,000.

   Defendant General Accident provided the statutory payment bond for the