A tolling agreement is a legal document that provides a framework for negotiations and dispute resolution between two parties. In New York, tolling agreements are commonly used in the construction industry to resolve disputes related to payment, delays, and other issues that arise during the course of a construction project.

Under a tolling agreement, the parties agree to suspend the statute of limitations on any potential legal claims they may have against each other, and to enter into a period of negotiations aimed at resolving their disputes without resorting to litigation. During this period, the parties may exchange information, engage in mediation or other forms of alternative dispute resolution, and work towards a mutually agreeable resolution.

The advantages of a tolling agreement are clear. For one, it allows parties to avoid the expense and uncertainty of litigation, which can be a lengthy and costly process. It also provides a confidential forum in which the parties can negotiate a settlement without the risk of public exposure or damaging publicity.

In addition, tolling agreements can be tailored to the specific needs of the parties involved. For example, they can be used to resolve disputes between contractors and subcontractors, owners and architects, or any other parties involved in a construction project. They can also be used to address specific issues such as delays, payment disputes, or disputes over the quality of work.

However, it is important to note that tolling agreements are not always appropriate or effective. In some cases, litigation may be necessary to protect the legal rights and interests of one or both parties. Moreover, tolling agreements can be complex and require careful negotiation and drafting to ensure that they accurately reflect the intentions of the parties involved.

In conclusion, tolling agreements can be a useful tool for resolving construction disputes in New York. By providing a framework for negotiations and dispute resolution, they can help parties avoid the expense and uncertainty of litigation while working towards a mutually agreeable solution. However, they require careful consideration and drafting to ensure their effectiveness. If you are considering entering into a tolling agreement, it is important to seek the advice of an experienced attorney who can guide you through the process and help you achieve a favorable outcome.