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Pennsylvania House of Representatives
http://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20130&cosponId=11984
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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: March 4, 2013 04:13 PM
From: Representative Neal P. Goodman
To: All House members
Subject: Contractors and Subcontractors Suspension of Work for Failure of Payment
 
In the near future, I will re-introduce legislation from last session (former HB 989) that would allow contractors and subcontractors to suspend performance of a construction contract without penalty if they are not promptly paid for their services and after they have provided seven days’ written notice to the party failing to make the required payment.

Currently, the Contractor and Subcontractor Payment Act of 1994 outlines the process by which contractors and subcontractors are paid for work performed. My legislation would amend the 1994 act by inserting language to allow for a work suspension without penalty by contractors and subcontractors after providing seven days’ written notice if any of the following conditions exist:
  • The owner of the construction property (or the contractor in the case of a subcontractor) has not paid as required;
  • The owner (or the contractor in the case of a subcontractor) has not provided the contractor/subcontractor a written statement of the withheld amount and the reason for the withholding; or
  • The owner (or the contractor) has not engaged in a good faith effort to resolve the reason for withholding.

Pennsylvania’s contractors and subcontractors are entitled to prompt payment for the services they provide. This legislation would provide them a much-needed tool to recover those payments.

Previous co-sponsors: BOYD, D. COSTA, DENLINGER, FABRIZIO, GEIST, GEORGE, GERGELY, GIBBONS, HARKINS, HESS, HORNAMAN, KORTZ, KULA, MILLARD, MOUL, MURPHY, MURT, READSHAW, REICHLEY, SABATINA, STABACK, WHEATLEY, WHITE and DAVIDSON


Introduced as HB1059