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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: February 16, 2017 10:41 AM
From: Representative James R. Santora and Rep. Michael J. Driscoll
To: All House members
Subject: Co-sponsor- Contractor and Subcontractor Payment
I am preparing to introduce legislation that will amend the Contractor and Subcontractor Payment Act (Act 7 of 1994). The Contractor and Subcontractor Payment Act was originally passed to provide a means for contractors/subcontractors involved in construction work to resolve contract disputes. The problem is that these disputes are still happening. In fact, it has led to more contractors/subcontractors leaning more toward filing mechanic’s liens to resolve payment disputes. We need to reduce reliance on the Mechanic’s Lien Law.

With that said, I plan on introducing legislation that would allow for suspension of work if payment is not received by a contractor or a subcontractor in accordance with the terms of their construction contract. Specifically, if the contractor/subcontractor is not paid under the contract terms, the following would apply before suspension of work could occur:

  1. The contractor/subcontractor has given 7 days notice of their intent to suspend work; and
  2. At least 60 days have passed since the end of the billing period of which payment has not been received.
I believe these provisions will assist contractors and subcontractors in receiving payment for work they have completed. I hope that you will join me by cosponsoring this legislation.

Introduced as HB566