Pennsylvania Consolidated Statutes

62 Pa. Cons. Stat. § 3934 (2026)

 Withholding of payment for good faith claims.

✓ current as of May 2026
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§ 3934.  Withholding of payment for good faith claims.

(a)  When government agency may withhold payment.--The government agency may withhold payment for deficiency items according to terms of the contract. The government agency shall pay the contractor according to the provisions of this subchapter for all other items which appear on the application for payment and have been satisfactorily completed. The contractor may withhold payment from any subcontractor responsible for a deficiency item. The contractor shall pay any subcontractor according to the provisions of this subchapter for any item which appears on the application for payment and has been satisfactorily completed.

(b)  Notification when payment withheld for deficiency item.--If a government agency withholds payment from a contractor for a deficiency item, it shall notify the contractor of the deficiency item within the time period specified in the contract or 15 calendar days of the date that the application for payment is received. If a contractor withholds payment from a subcontractor for a deficiency item, it must notify the subcontractor or supplier and the government agency of the reason within 15 calendar days of the date after receipt of the notice of the deficiency item from the government agency.

 

Cross References.  Section 3934 is referred to in sections 3933, 3935 of this title.

Notes of Decisions
Cited in 5 cases (2 in the last 5 years), 2014–2025 · leading case: A. Scott Enter., Inc. v. City of Allentown, 102 A.3d 1060 (Pa. Commw. Ct. 2014).
A. Scott Enter., Inc. v. City of Allentown, 102 A.3d 1060 (Pa. Commw. Ct. 2014). · cites it 4× “— If a government agency withholds payment from a contractor for a deficiency item, it shall notify the contractor of the deficiency item within the time period specified in the contract or 15 calendar days of the date that the application for payment is received.”
East Coast Paving & Sealcoating, Inc. v. North Allegheny Sch. Dist., 111 A.3d 220 (Pa. Commw. Ct. 2015). “62 Pa.C.S. § 3934(b); Section 6 of CASPA, 73 P.”
Clipper Pipe & Serv., Inc. v. Ohio Cas. Ins., 115 A.3d 1278 (Pa. 2015). “Finally, Appellants believe that it would be untenable for both CASPA and the Prompt Pay Act to apply simultaneously to a construction project, given that there are substantial differences in: the timing for provision of required notices, compare 73 P.”
Electri-Tech, Inc. v. Radnor Twp. (Pa. Commw. Ct. 2025). · cites it 4× “62 Pa. C.S. §3934. The Township did not provide this notice.”
D.A. Nolt, Inc. v. City of Lancaster (Pa. Commw. Ct. 2021). “62 Pa. C.S. §3934(b). It also allows recovery of attorney fees, costs, and penalties when payment is withheld in bad faith.”
— 62 Pa. Cons. Stat. § 3934(a) — 2 cases
A. Scott Enter., Inc. v. City of Allentown, 102 A.3d 1060 (Pa. Commw. Ct. 2014). “— If a government agency withholds payment from a contractor for a deficiency item, it shall notify the contractor of the deficiency item within the time period specified in the contract or 15 calendar days of the date that the application for payment is received.”
Electri-Tech, Inc. v. Radnor Twp. (Pa. Commw. Ct. 2025). “62 Pa. C.S. §3934. The Township did not provide this notice.”
— 62 Pa. Cons. Stat. § 3934(b) — 4 cases
A. Scott Enter., Inc. v. City of Allentown, 102 A.3d 1060 (Pa. Commw. Ct. 2014). “— If a government agency withholds payment from a contractor for a deficiency item, it shall notify the contractor of the deficiency item within the time period specified in the contract or 15 calendar days of the date that the application for payment is received.”
East Coast Paving & Sealcoating, Inc. v. North Allegheny Sch. Dist., 111 A.3d 220 (Pa. Commw. Ct. 2015). “62 Pa.C.S. § 3934(b); Section 6 of CASPA, 73 P.”
D.A. Nolt, Inc. v. City of Lancaster (Pa. Commw. Ct. 2021). “62 Pa. C.S. §3934(b). It also allows recovery of attorney fees, costs, and penalties when payment is withheld in bad faith.”
Electri-Tech, Inc. v. Radnor Twp. (Pa. Commw. Ct. 2025). “62 Pa. C.S. §3934. The Township did not provide this notice.”
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