Big changes coming to Pa.’s law for paying builders

On July 12, Gov. Tom Wolf signed legislation to amend the Contractor and Subcontractor Payment Act (CASPA). Effective Oct. 10, 2018, these amendments represent a longstanding effort to change the status quo in construction contracts and further protect builders seeking payments.

Importantly, the changes create new obligations for parties that withhold payment, lay out a path for how contractors or subcontractors can suspend work if payments are not received, and fortify CASPA’s provisions against creative contract language to the contrary.

The legislation to revise the 1994 act passed easily, with overwhelming bipartisan support. Click here to read the revised act.

– Joshua Lorenz, Meyer, Unkovic & Scott, jrl@muslaw.com