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Developer Was Not "Contractor" For Prompt Payment Purposes Payment; Interest

Friday, May 02, 2003 02:48 pm

Developer Was Not "Contractor" For Prompt Payment Purposes Payment; Interest

A Pennsylvania court has ruled that a real estate developer was an "owner," not a "contractor," for purposes of the state prompt payment statute. And the developer's allegation of good faith withholding due to defective work was undercut by the developer's conversion to long term financing.

Keystone Custom Homes, Inc. was developing a residential subdivision in Penn Township. Keystone awarded a contract to Joseph F. Cappelli and Sons, Inc. for construction of roads and other site improvements. The contract, entitled "Subcontract Agreement," identified Keystone as the "contractor" and Cappelli as [...]

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