Pennsylvania Bill to Provide for
Fair and Prompt Contractor Payments
The House Commerce Committee
Approves Legislative Language
Focused on You. Dedicated to Your Success.

The House approved legislative language on June 20, 2017, with strong bipartisan support drafted by James R. Santora (R-Delaware) and Michael Driscoll (D-Philadelphia) to permit contractors to suspend their work if they are not paid per contract terms. The bill passed the House Commerce Committee with complete support several weeks ago. 

According to an announcement by Santora’s office, contractors and subcontractors would be able to stop working on a project if:

  • Payment is not received per contract guidelines;
  • At least 60 days have passed since the end of the billing period, and; 
  • Seven calendars days’ notice was given of their intent to suspend work. 

Currently, suspension of work is not included in the payment dispute remedies available for contractors and subcontractors. 

Language was added to the bill that would prevent the provisions of the legislation to be waived in a contract. Also, it would require a written explanation to be provided when payment is withheld because the customer is unhappy with the work or materials provided. Failure to comply would require payment in full to the contractor or subcontractor. 

Feel free to contact me at 610.828.1900 or if you have questions. I am always happy to help.

Martin C. McCarthy, CPA
Managing Partner
McCarthy & Company, PC

Disclaimer:   This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code.  We strongly advise you to seek professional assistance with respect to your specific issue(s).