Item 7.01. Regulation FD Disclosure

This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On December 16, 2008, KSW, Inc.'s subsidiary was notified by the construction manager on the 56 Leonard Street Project in downtown Manhattan ("the Project"), that they had been notified by the owner that the Project has been placed on hold. The Company was directed not to perform any further work until further notice.

The HVAC contract for the Project is approximately $24 million, and was included in the Company's previously reported backlog. At the present time, the Company has no information as to if and when work on the Project will resume.