PRINTER'S NO. 2035
No. 1640 Session of 1975
INTRODUCED BY BONETTO, CRAWFORD, ANDERSON AND YOHN,
JULY 17, 1975
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JULY 18, 1975
AN ACT
1 Providing for the payment of interest on any withheld progress,
2 withheld retainage or withheld final invoice due on a
3 contract entered into with the Commonwealth of Pennsylvania,
4 its political subdivisions or their instrumentalities,
5 agencies or authorities by any architectural, engineering,
6 landscape architectural or surveying firm.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. As used in this act:
10 "Commonwealth of Pennsylvania," hereinafter referred to as
11 the State, includes all agencies, boards, bureaus, commissions,
12 instrumentalities, authorities, departments and tax-supported
13 institutions, which are directly or indirectly a part of the
14 State Government and its political subdivisions and their
15 instrumentalities, agencies and authorities.
16 "Firm" means any association, corporation, individual,
17 partnership or legal entity permitted by law to practice the
18 profession of architecture, engineering, landscape architecture
19 or surveying.
20 Section 2. In addition to all authorized payments of
1 invoices that are due, the State shall pay to the firm interest
2 at the prime rate on 90 day loans to commercial borrowers in
3 effect at a principal national financial institution located in
4 the State and selected by the State, on any withheld progress
5 payment, retainage payment and/or final payment due the firm
6 beginning 30 days after the firm has submitted an invoice in
7 accordance with the terms of its contract. The prime rate to be
8 that rate prevailing on the date the payment is due and running
9 until the date when such payment is made. This provision shall
10 apply to all contracts in effect on the effective date of this
11 act and all contracts entered into hereafter.
12 Section 3. This act shall take effect immediately.
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