NECA, Penn-Del-Jersey Testifies in Support of Prompt Pay

On Wednesday, March 1st, Jeffrey Scarpello, Executive Director of the Penn-Del-Jersey Chapter of NECA, testified at the Pennsylvania House Commerce Committee’s public hearing regarding the Contractor and Subcontractor Payment Act (CASPA) at the Community College of Philadelphia, Northeast Regional Center.

During the hearing, Chairmen Brian Ellis, Curtis Thomas, and members of the Commerce Committee discussed the prompt payment of contractors and subcontractors on construction projects. The two orders of business were House Bill 566, introduced by Representative Jamie Santora and Michael Driscoll, which would amend CASPA, and a draft of Representative David Maloney’s proposed changes to CASPA.

Scarpello testified in support of HB 566, which would help ensure the prompt payment of contractors and subcontractors by strengthening CASPA. Specifically, the bill would provide that a contractor or subcontractor could stop work, without penalty, if payment is not received in accordance with the provisions of the construction contract. The bill provides reasonable protections to owners and general contractors such as a requirement for advanced written notice of the intent to stop work and a requirement that at least 60 days have passed since the end of the billing cycle without payment being made in full. Similar protections are already law in other states including New Jersey, New York, Texas, Illinois, Oklahoma, Arizona, California, and Kansas. Scarpello was joined by Jim Gaffney, Owner and Operator of Goshen Mechanical, in support of the bill.

For questions about this legislation, please contact Helen Levins, Government Affairs Manager of Penn-Del-Jersey Chapter, NECA at hlevins@neca-pdj.org.

Above: Jim Gaffney and Jeffrey Scarpello testify before the PA House Commerce Committee.