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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: April 25, 2017 10:01 AM
From: Representative David M. Maloney, Sr.
To: All House members
Subject: Contractor and Subcontractor Payment
I am preparing to introduce legislation that will amend the Contractor and Subcontractor Payment Act (Act 7 of 1994). As many of you have heard from your constituents, it can be very problematic for a small construction-related business when payment is not received for work that has been satisfactorily completed. My legislation is intended to strengthen the law and provide additional incentives to pay contractors and subcontractors on time, as agreed.

Specifically, my bill will:
  • Provide that the provisions of the Contractor and Subcontractor Payment Act cannot be waived in a contract.
  • When payment or retainage is withheld for a deficiency item, require that a written explanation of the good-faith reason be provided.
  • Allow a contractor or subcontractor to post a maintenance bond to facilitate the release of retainage.
I believe that adding these provisions to the current law will provide additional protections for contractors and subcontractors. I hope that you will join me by cosponsoring this legislation.

Introduced as HB1387