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PRINTER'S NO. 591
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
566
Session of
2017
INTRODUCED BY SANTORA, DRISCOLL, SOLOMON, THOMAS, McNEILL,
PASHINSKI AND DUNBAR, FEBRUARY 21, 2017
REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 21, 2017
AN ACT
Amending the act of February 17, 1994 (P.L.73, No.7), entitled
"An act requiring timely payment to certain contractors and
subcontractors; and providing remedies to contractors and
subcontractors," further providing for owner's payment
obligations and for contractors' and subcontractors' payment
obligations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 5 of the act of February 17, 1994
(P.L.73, No.7), known as the Contractor and Subcontractor
Payment Act, is amended by adding a subsection to read:
Section 5. Owner's payment obligations.
* * *
(e) Suspension of performance.--If payment is not received
by a contractor in accordance with this section, the contractor
shall have the right to suspend performance of any work, without
penalty, until payment is received in full. Any term in a
construction contract contrary to this subsection shall be
unenforceable. Suspension of performance may occur only if:
(1) payment has not been made to the contractor in
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accordance with the schedule established under subsection
(c);
(2) the contractor has provided at least seven calendar
days' written notice of the contractor's intent to suspend
performance to the owner or the owner's authorized agent; and
(3) at least 60 calendar days have passed since the end
of the billing period for which payment has not been received
in full.
Section 2. Section 7(a) and (c) of the act are amended and
the section is amended by adding a subsection to read:
Section 7. Contractor's and subcontractor's payment
obligations.
(a) Entitlement to payment.--Performance by a subcontractor
in accordance with the provisions of the construction contract
shall entitle the subcontractor to payment from the party with
whom the subcontractor has contracted.
* * *
(c) Time for payment.--When a subcontractor has performed in
accordance with the provisions of the construction contract, a
contractor shall pay to the subcontractor, and each
subcontractor shall in turn pay to the subcontractor's
subcontractors, the full or proportional amount received for
each such subcontractor's work and materials, based on work
completed or service provided under the subcontract, 14 days
after receipt of each progress or final payment or 14 days after
receipt of the subcontractor's invoice, whichever is later.
Payment shall be made under this section unless it is being
withheld under section 11.
* * *
(e) Suspension of performance.--If payment is not received
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by a subcontractor in accordance with this section, the
subcontractor shall have the right to suspend performance of any
work, without penalty, until payment is received in full. Any
term in a construction contract contrary to this subsection
shall be unenforceable. Suspension of performance may occur only
if:
(1) payment has not been made to the subcontractor in
accordance with the schedule established under subsection
(c);
(2) the subcontractor has provided at least seven
calendar days' written notice of the subcontractor's intent
to suspend performance to the owner or the owner's authorized
agent; and
(3) at least 60 calendar days have passed since the end
of the billing period for which payment has not been received
in full.
Section 3. This act shall take effect in 60 days.
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