Contractor Act Compliance

What is the Contractor Act?

Pennsylvania’s Contractor and Subcontractor Payment Act, also known as CASPA, was signed into law in 1994 to protect against abuses in the transfer of payments between owners, contractors, and subcontractors. In June 2018, the Governor of Pennsylvania signed Act 27, an update to CASPA. As of November 2018, those who are not in compliance with the new updates may be held legally accountable.

How has CAPSA Been Updated?

Changes to CASPA include five major updates that your Philadelphia business lawyer can help you understand:

• Parties may no longer waive the Act through a contractual agreement.
• If owners and contractors do not pay, contractors and subcontractors have a legal right to suspend work.
• Owners and contractors who intend to withhold payment, must do so in writing within two weeks of being invoiced.
• Owners and contractors who do not given written notice within two weeks are strictly liable for the amount they have been invoiced.
• If an owner or contractor wishes to hold funds for longer than 30 days, they must provide written notice.

Why Do I Need a PA Business Attorney?

Whether you are an owner, contractor, or subcontractor, you need to be in compliance with CASPA. Perhaps you are an owner or a contractor who wants to withhold funds or persuade your contractor or subcontractors to do the work. You might also be a contractor or subcontractor, who hasn’t been paid for work that you have completed. A Bucks County business attorney will navigate the legal code and make sure that you are in compliance with CASPA, whether that means crafting written notices or demands for payment. A Philadelphia business lawyer will save you and your company money by avoiding the legal consequences of non-compliance.