§ 505. Owner's payment obligations
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 73 P.S. Trade and CommerceEffective: October 10, 2018
Effective: October 10, 2018
73 P.S. § 505
§ 505. Owner's payment obligations
(b) Absence of payment term.--In the absence of a construction contract or in the event that the construction contract does not contain a term governing the terms of payment, the contractor shall be entitled to invoice the owner for progress payments at the end of the billing period. The contractor shall be entitled to submit a final invoice for payment in full upon completion of the agreed-upon work.
(d) Interest.--Except as otherwise agreed by the parties, if any progress or final payment to a contractor is not paid within seven days of the due date established in subsection (c), the owner shall pay the contractor, beginning on the eighth day, interest at the rate of 1% per month or fraction of a month on the balance that is at the time due and owing.
(1) If payment is not received by a contractor in accordance with this section, the contractor shall have the right to suspend performance of any work, without penalty, until payment is received according to the terms of the construction contract. Any procedure in a construction contract that exceeds the procedure in paragraph (2) shall be unenforceable.
(ii) at least 30 calendar days have passed since the end of the billing period for which payment has not been received according to the terms of the construction contract. The contractor shall provide written notice to the owner or the owner's authorized agent, via electronic mail or postal service, stating that payment has not been made; and
Credits
1994, Feb. 17, P.L. 73, No. 7, § 5, effective in 60 days. Amended 2018, June 12, P.L. 131, No. 27, § 1, effective in 120 days [Oct. 10, 2018].
73 P.S. § 505, PA ST 73 P.S. § 505
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document |