The Pennsylvania Legislature has developed a two-pronged approach to regulating payment practices to subcontractors on privately funded construction projects. The Pennsylvania Mechanics’ Lien Law of 1963 (MLL) and the Pennsylvania Contractor and Subcontractor Payment Act (CASPA) have regulated construction contractor payments for years.
However, recent holdings in the Pennsylvania courts have shed new light on the interaction between the two statutes, which parties have priority in recovering claims, and what steps owners should take to minimize litigation costs.
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