1Amending the act of February 17, 1994 (P.L.73, No.7), entitled
2"An act requiring timely payment to certain contractors and
3subcontractors; and providing remedies to contractors and
4subcontractors," further providing for owner's payment
5obligations and for contractor's and subcontractor's payment
6obligations.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Sections 5 and 7 of the act of February 17, 1994 
10(P.L.73, No.7), known as the Contractor and Subcontractor
11Payment Act, are amended by adding subsections to read:

12Section 5. Owner's payment obligations.

13* * *

14(e) Suspension of performance.--A contractor may, after
15providing seven days' written notice to the party failing to
16make the required payment, suspend performance of a construction
17contract without penalty for breach of contract if:

18(1) the owner has not paid as required by this section;

19(2) the owner has not provided the contractor with a

1written statement of the withheld amount and the reason for
2the withholding; or

3(3) the owner has not engaged in a good faith effort to
4resolve the reason for withholding.

5Section 7. Contractor's and subcontractor's payment
6obligations.

7* * *

8(e) Suspension of performance.--A subcontractor may, after
9providing seven days' written notice to the party failing to
10make the required payments, suspend performance of a
11construction contract without penalty for breach of contract if:

12(1) the contractor or subcontractor has not paid as
13required by this section;

14(2) the contractor or subcontractor has not provided the
15subcontractor with a written statement of the withheld amount
16and the reason for the withholding; or

17(3) the contractor or subcontractor has not engaged in a
18good faith effort to resolve the reason for withholding.

19Section 2. This act shall take effect in 60 days.