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…And why your lawyer loves it more than cheesecake.
If you’re a Pennsylvania contractor or subcontractor chasing unpaid invoices, you need to know about CASPA. o, it’s not related to beer, cheesesteaks, or the graduate school application. It’s the Pennsylvania Contractor and Subcontractor Payment Act (73 P.S. §§ 501-516), and it’s essentially the “superhero” of construction law.
In an industry where delayed checks are the norm, CASPA serves as a powerful legal shield. Enacted in 1994, this PA construction payment law was created to stop payment abuses by establishing strict timelines and “teeth” for enforcement. If an owner or contractor withholds payment without a valid legal justification, CASPA provides the leverage to help ensure you get paid for the work you’ve completed. Contact an experienced PA construction attorney to learn more about how we can help.
Why CASPA Exists for the Self-Employed
Before CASPA, in the Pennsylvania construction industry were treated more as “suggestions” rather than legal obligations. Subcontractors frequently found themselves finishing work, submitting invoices, and then receiving little more than excuses. The law was created to “cure abuses within the building industry” by setting firm expectations for when payment must be made and what happens when it isn’t.
Key Protections for Contractor Payments Under CASPA
CASPA provides several powerful tools for independent contractors and subcontractors, including:
- Prompt payment requirements: Owners must pay independent contractors within defined timeframes, and those contractors must pay subcontractors, typically within 14 days of receiving payment.
- Interest on unpaid balances: Amounts wrongfully withheld accrue interest at 1% per month.
- Penalty damages: An additional 1% per month penalty may apply when payment is improperly delayed.
- Attorney’s fees and costs: If a party brings a CASPA claim and substantially prevails, the court may require the opposing party to pay reasonable attorney’s fees and litigation expenses.
This fee-shifting provision is one of the most significant aspects of the statute. It gives independent contractors real leverage and discourages delay tactics that would otherwise make litigation impractical.
How CASPA Affects Independent Contractors
Consider a subcontractor who completes work on a commercial project, submits an invoice, and receives no payment for months despite repeated follow-ups. Under CASPA, the unpaid balance for the work performed begins accruing interest and penalties almost immediately.
Once litigation is filed, the financial risk to the non-paying party grows quickly. In many cases, the mounting exposure (principal, interest, penalties, and attorney’s fees) leads to resolution long before trial. For independent contractors, this often means the law provides not just a remedy, but meaningful leverage.
Why CASPA Matters When You’re Paying Contractors
Most construction disputes come down to timing and cash flow. CASPA recognizes that delayed payment can be just as damaging as not paying employees, especially for small and mid-sized contractors who rely on predictable income to pay crews, suppliers, and operating expenses. By creating enforceable deadlines and real consequences, the law shifts the risk back to the party withholding compensation, where it belongs.
Talk to an Employment Lawyer if You’re a Misclassified Worker
While CASPA is a powerful tool, timing and documentation matter. Payment applications, contracts, written notices, and invoice records can all impact whether a claim succeeds. If you’re dealing with delayed or withheld payment on a Pennsylvania construction project, experienced legal guidance can make the difference. CASPA exists to protect independent contractors, but only when it’s used correctly. Getting paid on time isn’t just good business. In Pennsylvania, it’s the law.
If payment is slowing or stops altogether, asking a construction attorney to review your case can help preserve your rights and avoid unnecessary escalation. And if litigation becomes unavoidable, CASPA helps ensure that pursuing what you’re owed doesn’t cost more than the claim itself.
