GCAP works with Sen. Browne on passage of SB 563
Continuing its overall effort to ensure that Pennsylvania’s
Mechanics’ Lien law is made better for all aspects of the Commonwealth’s
construction industry, the General Contractors Association (GCAP) agreed to
Sen. Pat Browne’s (R-Lehigh) priority legislation to create specific relief for
those involved in the construction of residential properties.
While the bill was originally introduced with the exact same
provisions of SB 726 (which GCAP shepherded to a 50-0 vote in the Senate last
session), it was amended to provide more tailored relief for residential
construction.
As signed into law on August 11, Act 34 of 2009 eliminates
the monetary waiver exemption for residential projects (when the contract price
was less than $1,000,000) and changes it to three-story height limitation. That means a contractor may continue to waive
his right to file a claim against property for residential projects of any
price so long as they are three stories (not including the basement) in height
or less.
Recognizing how important this issue was back home for Sen.
Browne who is a member of Senate Republican Leadership, Chairman of the Senate
Finance Committee, Vice Chairman of the Senate Education Committee and a member
of the Senate Appropriations Committee, GCAP agreed to allow SB 563 to move
through the legislative process with the amendment mentioned above. As such, GCAP is pleased that Act 34 of 2009
provides immediate relief for all those engaged in residential home building
projects.
On the broader matter of Mechanics Lien reform, GCAP remains
an important resource for the General Assembly.
We continue to work with legislators and their staff to educate them about
how the different provisions of the statute impact the construction industry. Whether it be issues related to protection
for payment for work already completed or the process by which liens are filed,
making sure that the Mechanics Lien law does not unfairly or unnecessarily
impede the of progress of Pennsylvania’s construction industry is a top
priority for GCAP. We expect that
additional legislation proposing changes to the Mechanics Lien law will be
introduced during this legislative session, and we will work with the prime
sponsors of these bills to ensure that they benefit Pennsylvania construction.
For more information regarding SB 563 or the Mechanics’ Lien
Law, please contact…