Payment Claims Archives

PA Supreme Court says CASPA does not apply to public projects

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Payment Claims on Jul 20, 2015.

It took a federal court to ask for guidance, but the Pennsylvania Supreme Court has finally formally declared as law a concept most construction lawyers already assumed to be the case: the Pennsylvania Contractor and Subcontractor Payment Act does not apply to public works projects.

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PA Superior Court Limits PA Prompt Payment Law

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Payment Claims on Jan 6, 2015.

Owners and contractors on Pennsylvania construction projects are familiar with the Contractor and Subcontractor Payment Act (“CASPA”). CASPA requires owners to pay contractors in accordance with the terms of their contract, and for contractors to pay subcontractors in accordance with the terms of the subcontract. If payments are not timely made without a good faith reason, CASPA allows an unpaid contractor or subcontractor to recover (in addition to the amount owed) interest at the rate of 1% per month, penalties at the rate of 1% per month, and attorney’s fees incurred to collect payment.

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