A
little known statute in Pennsylvania provides the
framework requiring Contractor and Subcontractor payment.
In 1994, Pennsylvania enacted the Contractor and
Subcontractor Payment Act. The Act requires timely payment
to contractors and subcontractors, remedies and damages.
Performance by a contractor or subcontractor in accordance
with the provisions of a contract entitles the contractor
or subcontractor to payment from the party with whom the
contractor or subcontractor has contracted. The Act
requires adherence to the contract. If there is no
provision in the contract for the time of payment, payment
must be made in twenty days. After 27 days, interest
automatically begins to accrue at the rate of 12% per
year.
Payment of Subcontractors
by Contractors
Pennsylvania Law requires timely payment
of Subcontractors by General Contractors. If a
Subcontractor performs his obligations under a contract
with the General Contractor, he is entitled to timely
payment. A General Contractor is obliged to disclose to a
Subcontractor, before a subcontract is executed, the due
date for receipts of payments from the Property Owner. If
the disclosure is not made, then the General Contractor is
required to make payment as if the owner had paid within
34 days regardless of whether the owner actually paid or
not. If the date of payment is disclosed and received, a
General Contractor is required to pay the Subcontractor
within 14 days of receipt. After 21 days, the
Subcontractor may charge interest at the rate of 12% per
year.
How to get paid:
Pennsylvania
Law assesses a 12% per year penalty and attorneys fees for
violations of the Pennsylvania Contractor and
Subcontractors Payment Act. In other words, in addition to
the amounts owed to the contractor or subcontractor, the
Defendant who violated the Contractor and Subcontractor
Payment Act must pay the Contractor or Subcontractor’s
expenses, attorneys fees, damages, and costs plus 12%
interest. Patberg, Carmody, Ging & Fillippi has
successfully litigated these claims and represents
Contractors and Subcontractors in all areas of
construction law.
Patberg, Carmody, Ging & Filippi is a
Downtown Pittsburgh based law firm with Satellite Offices
in Murrysville, Franklin Park and Erie. The partners at
Patberg, Carmody, Ging & Filippi have a combined 40 years
of experience representing contractors, subcontractors and
the trades. They understand the difficulties and necessity
of timely payment to subcontractors, contractors and the
trades. They understand the need to preserve cash
flow;make payroll;pay suppliers and maintain
relationships. The Attorneys at Patberg, Carmody, Ging &
Fillippi also understand that many contractors don’t have
the cash to hire a lawyer to pursue these claims. In order
to serve its clientele, Patberg, Carmody, Ging & Fillippi
offers a Free Consultation to discuss the amounts owed.
Patberg, Carmody, Ging & Fillippi take many of the cases
on a contingency basis. Contact Rolf Patberg, Sean Carmody
or Terry Ging at 412-232-3500 for more details.
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