Background

73 P.S. § 501, et. seq. is known as the Contractor and Subcontractor Payment Act (“CASPA”)  is a statute that was enacted in 1994 “to cure abuses within the building industry involving payments from contractors to subcontractors and to encourage fair dealing among the parties to a construction contract.” Zimmerman v. Harrisburg Fudd I

Background

Like most states, New Jersey has as statute that seeks to incentive prompt payment to contractors and subcontractors.  New Jersey’s Pompt Payment Act is designed to further New Jersey’s “strong public policy to ensure that contractors performing construction work in New Jersey are paid promptly.” Erco Interior Sys., Inc. v. Nat’l Commercial Builders, Inc.

Ah yes, retainage, what could represent your profit on a project and something frequently abused by owners on private and public projects alike.  Fortunately, Pennsylvania law offers public works contractors some protection from retainage abuse.  The Public Prompt Payment Act dictates when retainage can be withheld and when it must be released.  Agencies that fail