A recent ruling by the Pennsylvania Supreme Court puts limits on a state law meant to ensure that contractors and subcontractors receive prompt payment for their work.
The court ruled that the state’s Contractor and Subcontractor Payment Act (CASPA) does not apply to construction projects where the owner is a governmental entity. The case, Clipper Pipe & Service, Inc. v. Ohio Casualty Insurance Co., pertained to the construction of an addition and renovations to the Navy/Marine Corps Reserve Training Center in the Lehigh Valley.
The contractor, Contracting Systems, Inc., failed to pay a subcontractor, Clipper Pipe & Service for performance of mechanical and HVAC work, according to JD Supra Business Advisor. Clipper sued CSI and its surety, asserting claims for breach of contract and violation of CASPA. The claim likely would have allowed it to recover its attorneys’ fees and possibly a statutory penalty if the court had ruled in the subcontractor’s favor.
On public projects, contractors working in Pennsylvania must rely on the Prompt Pay Act (“PPA”), which governs the payment obligations and rights of contractors and subcontractors on public projects. That statute, however, differs from CASPA with different timing provisions for payment, a different rate of interest, and a different burden of proof associated with penalty and attorneys’ fees provisions. Notably, it is also more difficult for a party to recover attorneys’ fees and penalties under the PPA than under CASPA.
Related Stories
Codes and Standards | Jun 24, 2015
LEED building at Duke University may be retrofitted to prevent bird deaths
More birds die from colliding with buildings at Duke than on any other campus in a 45-school survey conducted by Augustana College. Duke is located along the Atlantic Flyway, a bird migration route.
Codes and Standards | Jun 24, 2015
Balcony collapse in Berkeley, Calif., prompts an examination of codes
Dry rot and too much weight appear to be the causes of a fatal accident at an eight-year-old building in Berkeley, Calif.
Codes and Standards | Jun 18, 2015
Guides to wood construction in high wind areas updated
The guides establish prescriptive, wind-resistive structural requirements for wood-frame buildings of different sizes and shapes.
Codes and Standards | Jun 18, 2015
New document addresses school safety and security
In an effort to balance security and fire safety features within codes, standards and planning, NFPA hosted a two-day workshop, “School Safety, Codes and Security”, last December. The findings are now available in an NFPA report.
Codes and Standards | Jun 18, 2015
Two myths regarding NFPA 101 Life Safety Code debunked
NFPA life safety engineer Ron Coté settles the debate over second egress doors and exit signs.
Codes and Standards | Jun 18, 2015
How to prevent corrosion in sprinkler system piping
The technical committees responsible for NFPA 13, Installation of Sprinkler Systems, have been looking at ways to eliminate or reduce corrosion in sprinkler systems for several revision cycles.
Codes and Standards | Jun 11, 2015
Steel Framing Alliance updates ‘Thermal Design and Code Compliance for Cold-Formed Steel Walls’ design guide
Includes results of new tests and addresses IECC and ASHRAE compliance paths.
Codes and Standards | Jun 11, 2015
Helena, Mont., may charge commercial developers a fee to fund public art
The fee would apply to new construction or alteration of nonresidential buildings of at least 20,000 sf.
Codes and Standards | Jun 11, 2015
DBIA releases new document on choosing a project delivery method
Provides owners and others with factors to consider when choosing the best method of delivery for their project.
High-rise Construction | Jun 5, 2015
Japanese policymakers discuss mandate for toilets in elevators
This quirky-sounding building code is a safety measure for the earthquake-prone nation.