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Pennsylvania Statutes Title 73 P.S. Trade and Commerce § 511. Contractor’s and subcontractor’s withholding of payment for good faith claims

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) Authority to withhold.--The contractor or subcontractor may withhold payment from any subcontractor responsible for a deficiency item. The contractor or subcontractor shall pay any subcontractor 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 a contractor or subcontractor withholds payment from a subcontractor for a deficiency item, the contractor or subcontractor withholding payment must notify the subcontractor and the owner in writing of the good faith reason for the withholding within the time period specified in the construction contract or 14 calendar days of the date after receipt of the notice of the deficiency item.

(2) Failure to comply with paragraph (1) shall constitute a waiver of the basis to withhold payment and necessitate payment of the subcontractor in full for the invoice.

(c) Amount of withholding.--If a contractor or subcontractor withholds payment from a subcontractor for a deficiency item, the contractor or subcontractor withholding payment shall remit payment to the subcontractor for each other item that has been satisfactorily completed under the construction contract.

1 73 P.S. § 509.
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Cite this article: FindLaw.com - Pennsylvania Statutes Title 73 P.S. Trade and Commerce § 511. Contractor’s and subcontractor’s withholding of payment for good faith claims - last updated January 01, 2025 | https://codes.findlaw.com/pa/title-73-ps-trade-and-commerce/pa-st-sect-73-511/

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