What does Pennsylvania’s prompt payment law require on private construction?

In Pennsylvania, unless the contract says otherwise, an owner must pay a contractor’s interim and final invoices 20 days after the end of the billing period or 20 days after receiving the invoice, whichever is later, a contractor must pay a subcontractor 14 days after receiving payment for its work or 14 days after the subcontractor’s invoice, whichever is later, and late payments bear interest at 1% a month (for an owner, from the eighth day after the due date). The act does not apply to improvements to real property of six or fewer residential units under construction at the same time, and its provisions cannot be waived by contract unless the act allows it. An owner may withhold a reasonable amount for a deficiency item only by giving the contractor a written good-faith explanation within 14 calendar days of receiving the invoice, or the right to withhold is waived. Retainage due on final completion must be paid within 30 days after final acceptance of the work. A contractor that is not paid on time may suspend work without penalty after giving the statutory written notices, and in a proceeding to recover payment the court or arbitrator adds a penalty of 1% a month of any amount wrongfully withheld and awards the substantially prevailing party a reasonable attorney fee and expenses. A written contract can set its own payment terms where the statute allows. This is 73 P.S. §§ 502, 503, 505, 506, 507, 509, 512.

WhatPennsylvania
Payment deadlineOwner pays in 20 days; subs in 14 days; 1% a month
Who this coversPrivate construction, not only public works

What the statute says

“… payment of interim and final invoices shall be due from the owner 20 days after the end of a billing period or 20 days after delivery of the invoice, whichever is later …”

Quoted word for word from the section’s text.

Source

73 P.S. §§ 502, 503, 505, 506, 507, 509, 512

Read the statute in the Pennsylvania Statutes (Pennsylvania General Assembly): palegis.us.

Checked against the statute on November 15, 2026.

This is a summary of a published statute, not legal advice. Rules change, local ordinances can add to them, and the terms of a specific lease may differ. Check the citation and speak to a lawyer before acting.

How Seayora uses this rule

A contractor on Seayora keeps every job’s dates, its estimate, its invoices and its payments in one record, so the date work was last performed, the date each invoice went out and the amount still owed are on file when a lien or payment deadline is counted.

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