Should Final Payment Requirements Be Strictly Enforced?

When a contractor completes a project and is ready to receive final payment, there is more involved than an inspection and approval of the work itself. Construction contracts typically require submission of extensive documentation: affidavits, proof of payment, lien waivers, warranty information, record drawings, consent of surety, etc.

The detailed nature of the final payment procedure gives rise to a question. Must a contractor strictly comply with the application requirements in order to be legally entitled to the contract balance? A Pennsylvania court recently answered in the affirmative.

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