Page 33 - Network Magazine Spring 2019
P. 33

 is consensually withheld until the work is substantially complete, to ensure that the Contractor or Subcontrac- tor fulfills its obligations. Under CASPA, retainage is to be paid within thirty (30) days of final acceptance of work. If not, the unpaid Contractor can seek the same interest, penalty, and fees for non-payment mentioned above.
Where a Contractor or Subcontractor submits an invoice, which contains errors or some impropriety relating to the paperwork, CASPA imposes an affirma- tive duty to act on the Owner or Contractor receiving that invoice. They are required to give written notice within ten (10) working days of the error in the invoice. Once notice is received, the Owner or Contractor is still required to pay the invoice by the due date.
For public works projects, CASPA will not apply, and instead, the Pennsylvania Prompt Payment Act is applicable. CASPA also does not apply to residential construction, unless the project involves simultaneous construction of seven or more units.
As a result of these changes, Contractors, Subcon- tractors, Owners of real estate and real estate de- velopers more generally will want to look over their contracts and evaluate how they deal with disputes over construction work. Everyone involved in the field will do well to pay careful attention to deadlines and act promptly to give notice of deficiency items.
As with any new law, there are important details in the amendments to CASPA for Owners, Contractors, Sub- contractors, and subs of subs. If you are facing a legal challenge in a construction project, it is important to act promptly and document the situation to protect your legal interests. It is often better to consult legal counsel sooner rather than later in the process so that impor- tant rights are not lost. The lawyers at Fitzpatrick Lentz & Bubba, P.C. are always available and willing to help.

   31   32   33   34   35