THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY TAYLOR, MAY 25, 2011

REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MAY 25, 2011  

AN ACT

Amending the act of November 10, 1999 (P.L.491, No.45), entitled

"An act establishing a uniform construction code; imposing

powers and duties on municipalities and the Department of

Labor and Industry; providing for enforcement; imposing

penalties; and making repeals," further providing for

definitions and for municipal administration.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 103 of the act of November 10, 1999

(P.L.491, No.45), known as the Pennsylvania Construction Code

Act, is amended by adding definitions to read:

Section 103.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Change order."  Work that is added to or deleted from the

original scope of work of a contract which alters the original

contract amount or completion date.

* * *

"Retainage."  A percentage of a contract price which is

withheld from a contractor by an owner or withheld from a

subcontractor or materials supplier by a contractor for a period

of time as a guarantee for work performed or materials supplied,

pursuant to a project's contract.

* * *

Section 2.  Section 501 of the act is amended by adding a

subsection to read:

Section 501.  Administration and enforcement.

* * *

(i)  Payment of retainage.--The following apply:

(1)  Except as set forth in paragraph (2), a certificate

of occupancy for a commercial building or structure may not

be issued by a construction code official or a municipal code

official until the owner provides certification that all

change orders and retainage for contractors, subcontractors

and materials suppliers, that performed work or supplied

materials for the building or structure, have been paid. This

paragraph does not apply to any of the following:

(i)  Amounts necessary to ensure completion of

incomplete work. The owner shall supply the construction

code official or municipal code official with a written

list specifying a description of work not satisfactorily

performed along with a list of amounts withheld for

incomplete or defective work.

(ii)  Amounts necessary to ensure performance of work

which is noted in a written list provided to the owner

specifying deficiencies yet to be corrected.

(iii)  Amounts necessary to compensate for

undelivered, defective or otherwise inadequate supplies.

(2)  A construction code official or a municipal code

official may issue a certificate of occupancy if the owner

can demonstrate that disputed amounts are in an escrow

account awaiting the determination of a legal proceeding.

Section 3.  This act shall take effect January 1, 2013.