Pennsylvania passed payment statutes governing construction on private and public projects in the 1990s with the goal of protecting contractors and subcontractors against not being paid promptly for labor and materials. These statutes aim to protect contractors and subcontractors by providing guidelines for prompt payment, and their purpose is often summarized as “leveling the playing field” between public or private owners and construction professionals.
This leveling is accomplished by outlining payment expectations between contracting parties where written terms are either unclear or nonexistent, by clarifying when and how an owner or contractor can withhold payment on a project, and by setting significant penalties in the form of attorney fees, interest and penalties when the statutes’ payment and withholding provisions are not complied with.
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