Who can file a lien in this State? Pennsylvania law permits contractors and subcontractors to claim a lien for labor or materials furnished in the ion or construction, or the alteration or repair of the improvement, provided that the amount of the claim shall exceed five hundred dollars ($500).
The Contractor and Subcontractor Payment Act (CASPA) has been a law in Pennsylvania since 1994, providing tools to protect prime and subcontractors from nonpayment. It is one of several payment regulations put into law across the US to help alleviate some of the payment problems in the construction industry.
Pennsylvania's statute of repose sets a hard deadline of 12 years after the completion of construction for bringing any action related to construction defects. This applies regardless of when the defect was discovered, with some exceptions for fraud or intentionally concealed defects.
Pennsylvania has strict criminal laws that apply to contractors who negotiate contracts and perform home improvement jobs. A conviction for home improvement fraud can impact your freedom and privilege to work as a contractor in the future.
Pennsylvania sales tax does not apply to construction activities that are made under contract and involve the permanent attachment of tangible personal property to realty.
As a general rule of thumb your contractor rate should be at least 50% more than you'd get for the same work as an employee.
Lien Claim—All claimants must file a Lien Claim in the prothonotary's (court clerk's) office within six months of last work and serve notice of the lien claim on owner within one month after that.
To obtain a judgment lien, you must first record the judgment with the court of common pleas in the county where the debtor owns property. The lien will stay in effect for five years, but can be renewed, if the debtor does not sell the property within that time period.
A Pennsylvania Notice of Intent is a critical step to secure your PA mechanics lien rights on private construction projects. This Pennsylvania lien notice form is required to be sent by all potential claimants who didn't contract directly with the property owner at least 30 days before filing a mechanics lien claim.