Driscoll, Santora bill to protect families financially becomes law
PHILADELPHIA, June 15 – State Rep. Mike Driscoll, D-Phila., witnessed the signing of legislation that minimizes financial uncertainty and encourages fairer treatment for contractors and subcontractors in Pennsylvania.
House Bill 566, signed into law as Act 27 of 2018, allows contractors to suspend their work if they are not paid per contract terms.
“This law will significantly impact the lives of many Pennsylvania families. Contractors and subcontractors often face a greater risk of going unpaid because they are compensated in full after the services are provided,” said Driscoll, co-sponsor of the bill. “I think our legislation will strike the right balance in making sure contractors are paid for the work they do. Consequently, we’ll help support families who depend on that income.”
Under the new law, contractors and subcontractors will 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 may be suspended without penalty.
The law becomes effective in 120 days.