Home Table of Contents

§ 506. Owner's withholding of payment for good faith claims

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 73 P.S. Trade and CommerceEffective: October 10, 2018

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 73 P.S. Trade and Commerce (Refs & Annos)
Chapter 14A. Contractor and Subcontractor Payment Act (Refs & Annos)
Effective: October 10, 2018
73 P.S. § 506
§ 506. Owner's withholding of payment for good faith claims
Currentness
(a) Authority to withhold.--The owner may withhold payment for deficiency items according to the terms of the construction contract. The owner shall pay the contractor according to the provisions of this act for any item which appears on the invoice and has been satisfactorily completed.
(b) Notice.--
(1) Except as provided under section 9,1 if an owner withholds payment from a contractor for a deficiency item, the amount withheld shall be reasonable and the owner shall notify the contractor of the deficiency item by a written explanation of its good faith reason within 14 calendar days of the date that the invoice is received.
(2) Failure to comply with paragraph (1) shall constitute a waiver of the basis to withhold payment and necessitate payment of the contractor in full for the invoice.
(3) If an owner withholds payment from a contractor for a deficiency item, the owner shall remit payment to the contractor for each other item that has been satisfactorily completed under the construction contract.

Credits

1994, Feb. 17, P.L. 73, No. 7, § 6, effective in 60 days. Amended 2018, June 12, P.L. 131, No. 27, § 2, effective in 120 days [Oct. 10, 2018].

Footnotes

1
73 P.S. § 509.
73 P.S. § 506, PA ST 73 P.S. § 506
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document