Pennsylvania Consolidated Statutes

62 Pa. Cons. Stat. § 3932 (2026)

 Government agency's progress payment obligations.

✓ current as of May 2026
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§ 3932.  Government agency's progress payment obligations.

(a)  Payments in accordance with contract.--The government agency shall pay the contractor or design professional strictly in accordance with the contract.

(b)  Application for progress payments.--If the contract does not contain a term governing the time for payment, the contractor or design professional shall be entitled to make application for payment from the government agency for progress payments, and the government agency shall make payment less the applicable retainage amount as authorized in section 3921 (relating to retainage) to the contractor or design professional within 45 calendar days of the date the application for payment is received.

(c)  Interest on progress payments not timely made.--Except as otherwise agreed by the parties, if any progress payment less the applicable retainage amount as authorized in section 3921 is not made to a contractor or design professional by the due date established in the contract or in subsection (b), the government agency shall pay to the contractor or design professional, in addition to the amount due, interest on the amount due, and the interest shall be computed at the rate determined by the Secretary of Revenue for interest payments on overdue taxes or the refund of taxes as provided in sections 806 and 806.1 of the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code.

(d)  When interest payment not required.--In the event that the contract does not contain a grace period and if a contractor or design professional is not paid by the payment date required by subsection (b), no interest penalty payment required under this section shall be paid if payment is made on or before the 15th calendar day after the payment date required under this subchapter.

 

Cross References.  Section 3932 is referred to in sections 3933, 3938 of this title.

Notes of Decisions
Cited in 13 cases (3 in the last 5 years), 2007–2025 · leading case: James Corp. v. North Allegheny Sch. Dist., 938 A.2d 474 (Pa. Commw. Ct. 2007).
James Corp. v. North Allegheny Sch. Dist., 938 A.2d 474 (Pa. Commw. Ct. 2007). · cites it 3× “12 pursuant to 62 Pa.C.S. § 3932, which requires interest to be computed at the rate determined by the Secretary of Revenue under the Fiscal Code.”
A. Scott Enter. v. City of Allentown, Aplt., 142 A.3d 779 (Pa. 2016). · cites it 2× “See 62 Pa.C.S. §3932(c) (if progress [J-11A-2016 and J-11B-2016] - 17 payments are not timely made, government agency shall pay to contractor or design professional, in addition to amount due, interest on amount due).”
Merscorp, Inc. v. Del. Cnty., 207 A.3d 855 (Pa. 2019). “at 788-89 (citing 62 Pa.C.S. § 3932(c) ). Thus, the Majority is incorrect that A.”
Boro Constr., Inc. v. Ridley Sch. Dist., 992 A.2d 208 (Pa. Commw. Ct. 2010). · cites it 2× “” 62 Pa.C.S. § 3932(a). 11 Moreover, as this Court has previously noted, a “condition precedent” may be defined as a condition that must occur before a duty to perform under a contract arises.”
East Coast Paving & Sealcoating, Inc. v. North Allegheny Sch. Dist., 111 A.3d 220 (Pa. Commw. Ct. 2015). · cites it 2× “" 62 Pa.C.S. § 3932. The contract between East Coast and the School District provided for progress payments.”
A. Scott Enter., Inc. v. City of Allentown, 102 A.3d 1060 (Pa. Commw. Ct. 2014). · cites it 3× “62 Pa.C.S. § 3932. If the City disputed the amount of a suspension invoice, it was required to so notify Contractor, withhold the disputed amount and pay the remainder of the invoices.”
Dep't of Gen. Servs. v. Pittsburgh Bldg. Co., 920 A.2d 973 (Pa. Commw. Ct. 2007). “Also under Sub-chapter D, 62 Pa.C.S. § 3932(a) mandates “the government agency shall pay the contractor .”
Clipper Pipe & Serv., Inc. v. Ohio Cas. Ins., 115 A.3d 1278 (Pa. 2015). “§ 505, with 62 Pa.C.S. § 3932(c); and the burden of proof associated with penalty and attorneys’ fee awards, compare 73 P.”
Cecil Twp. Mun. Auth. v. North Am. Specialty Sur. Co., 836 F. Supp. 2d 367 (W.D. Pa. 2011). “See 62 Pa.C.S. §§ 3932(c) and 3941(b). Such an additional award could be construed as a means of punishment or deterrence because it is twice the statutorily mandated interest usually available under Pennsylvania law.”
Electri-Tech, Inc. v. Radnor Twp. (Pa. Commw. Ct. 2025). · cites it 2× “” 62 Pa. C.S. §3932(a). As to withholding payment, the Prompt Pay Act states, in pertinent part, as follows: (a) When government agency may withhold payment.”
MERSCORP v. Delaware Co., Aplts. (Pa. 2019). “at 788-89 (citing 62 Pa.C.S. § 3932(c)). Thus, the Majority is incorrect that A.”
D.A. Nolt, Inc. v. City of Lancaster (Pa. Commw. Ct. 2021). “62 Pa. C.S. §3932(b). In addition, the statute allows payment to be withheld when certain notice criteria are satisfied.”
— 62 Pa. Cons. Stat. § 3932(a) — 4 cases
Boro Constr., Inc. v. Ridley Sch. Dist., 992 A.2d 208 (Pa. Commw. Ct. 2010). “” 62 Pa.C.S. § 3932(a). 11 Moreover, as this Court has previously noted, a “condition precedent” may be defined as a condition that must occur before a duty to perform under a contract arises.”
A. Scott Enter., Inc. v. City of Allentown, 102 A.3d 1060 (Pa. Commw. Ct. 2014). “62 Pa.C.S. § 3932. If the City disputed the amount of a suspension invoice, it was required to so notify Contractor, withhold the disputed amount and pay the remainder of the invoices.”
Dep't of Gen. Servs. v. Pittsburgh Bldg. Co., 920 A.2d 973 (Pa. Commw. Ct. 2007). “Also under Sub-chapter D, 62 Pa.C.S. § 3932(a) mandates “the government agency shall pay the contractor .”
Electri-Tech, Inc. v. Radnor Twp. (Pa. Commw. Ct. 2025). “” 62 Pa. C.S. §3932(a). As to withholding payment, the Prompt Pay Act states, in pertinent part, as follows: (a) When government agency may withhold payment.”
— 62 Pa. Cons. Stat. § 3932(b) — 3 cases
East Coast Paving & Sealcoating, Inc. v. North Allegheny Sch. Dist., 111 A.3d 220 (Pa. Commw. Ct. 2015). “" 62 Pa.C.S. § 3932. The contract between East Coast and the School District provided for progress payments.”
D.A. Nolt, Inc. v. City of Lancaster (Pa. Commw. Ct. 2021). “62 Pa. C.S. §3932(b). In addition, the statute allows payment to be withheld when certain notice criteria are satisfied.”
Electri-Tech, Inc. v. Radnor Twp. (Pa. Commw. Ct. 2025). “” 62 Pa. C.S. §3932(a). As to withholding payment, the Prompt Pay Act states, in pertinent part, as follows: (a) When government agency may withhold payment.”
— 62 Pa. Cons. Stat. § 3932(c) — 7 cases
A. Scott Enter. v. City of Allentown, Aplt., 142 A.3d 779 (Pa. 2016). “See 62 Pa.C.S. §3932(c) (if progress [J-11A-2016 and J-11B-2016] - 17 payments are not timely made, government agency shall pay to contractor or design professional, in addition to amount due, interest on amount due).”
James Corp. v. North Allegheny Sch. Dist., 938 A.2d 474 (Pa. Commw. Ct. 2007). “12 pursuant to 62 Pa.C.S. § 3932, which requires interest to be computed at the rate determined by the Secretary of Revenue under the Fiscal Code.”
Merscorp, Inc. v. Del. Cnty., 207 A.3d 855 (Pa. 2019). “at 788-89 (citing 62 Pa.C.S. § 3932(c) ). Thus, the Majority is incorrect that A.”
Clipper Pipe & Serv., Inc. v. Ohio Cas. Ins., 115 A.3d 1278 (Pa. 2015). “§ 505, with 62 Pa.C.S. § 3932(c); and the burden of proof associated with penalty and attorneys’ fee awards, compare 73 P.”
Cecil Twp. Mun. Auth. v. North Am. Specialty Sur. Co., 836 F. Supp. 2d 367 (W.D. Pa. 2011). “See 62 Pa.C.S. §§ 3932(c) and 3941(b). Such an additional award could be construed as a means of punishment or deterrence because it is twice the statutorily mandated interest usually available under Pennsylvania law.”
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