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Pennsylvania Speed Bumps

Pennsylvania Commercial FULL PRICE lien state.
Pennsylvania Residential UNPAID BALANCE as of 9/7/14.

  • Claims under $500 are not lienable.
  • For contracts entered on or after January 1, 2007, advance waivers of liens were declared void. With the following exceptions.
  • Act 34, which took effect as of October 10, 2009, reinstated the right of contractors and subcontractors to waive their lien rights on residential projects. This right now applies regardless of the value of the construction contract as long as the building in question isn't more than three stories tall, not including a basement level.
  • The Pennsylvania Contractor and Subcontractor Payment Act affect the rights of contractors and owners on both public and private projects. The statute applies to all agreements, whether written or oral, to perform work on any real property located within Pennsylvania executed on or after April 18, 1994.

The Payment Act requires the owner of a project to “pay the contractor strictly in accordance with the terms of the construction contract.”  In the event that the contract or subcontract does not contain payment terms, the Payment Act provides those terms:

  • A contractor may invoice the owner at the end of the billing period;
  • A contractor may submit a final invoice for payment in full upon completion of the agreed-upon work;
  • Payment of the invoice is due within 20 days after the end of a billing period or 20 days after delivery of the invoice, whichever is later; and
  • A subcontractor, so long as it has performed in accordance with the provisions of the contract, is required to be paid by the contractor or subcontractor that retained it 14 days after receipt of each progress or final payment or 14 days after receipt of the subcontractor’s invoice, whichever is later.

P3 Legistlation: There are requirements for a private development entity to provide performance and payment bonds, parent company guarantees, letters of credit or other acceptable forms of security in an amount acceptable to the proprietary public entity.