Bill to Protect Families Financially Awaits the Governor’s Signature

HARRISBURG, May 23 – Today, the House voted on concurrence on a bill drafted by Reps. James R. Santora, R-Delaware, and Michael Driscoll, D-Phila., to permit contractors to suspend their work if they are not paid per contract terms. It now heads to the governor for his signature.

“Because contractors and subcontractors are not paid in full before they provide their services, they face a much greater risk of going unpaid than is typical for other workers. This impacts families who depend on payments that are rightfully owed for goods and services that were provided,” Santora said. “Our bill works to minimize that uncertainty and encourage fairer treatment for contractors and subcontractors.”

Under the bill, contractors and subcontractors would be able to stop working on a project if payment is not received per contract guidelines. To be eligible to suspend work, 30 days from the end of the billing cycle must pass. Then, they would have to provide written notice via mail or email and wait an additional 30 days. If payment is not received, they would have to provide at least 10 calendar days of notice by certified mail. If payment is not received during those 70 days, work could be suspended without penalty.

Before being amended by the Senate, the bill stated that contractors and subcontractors could suspend their work if at least 60 days have passed since the end of the billing period and seven calendar days’ notice was given of their intent to suspend work.

The bill also would prohibit provisions of the legislation from being waived in a contract. Additionally, a written explanation would have to be provided when payment is withheld because the customer is unhappy with the work or materials provided. Failure to comply would require payment to the contractor or subcontractor in full.

“I appreciate the bipartisan cooperation on this bill, and I think it would strike the right balance on making sure contractors are paid for the work they do,” Driscoll added.

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