Pennsylvania · Construction claims reference

Construction Claim Rules in Pennsylvania

Every figure below is the researched rule for Pennsylvania, with its citation and a direct link to the official source so you can confirm it yourself. Covers statutory interest and when it starts accruing, how Actual Cash Value is determined and whether labor can be depreciated, whether a “no damages for delay” clause is enforceable and how long you have to file, the state-specific inputs behind a fully burdened labor rate and who can be held liable for a construction-site injury.

Statutory Interest & Accrual in Pennsylvania

The rate itself and the date interest starts running, which differs by claim type in most states.

Statutory interest rate

6% / year, fixed

Static legal rate, unchanged for decades; applies to contract/construction judgments via the general judgment-interest statute.

Compounding: Simple (general practice; not expressly stated in the statute text)

Citation: 41 P.S. § 202; 42 Pa. C.S. § 8101

Source: https://www.legis.state.pa.us/WU01/LI/LI/US/HTM/1974/0/0006..HTM

Accrual: breach of contract claim

Mandatory from the breach date only if damages are liquidated/ascertainable from the contract itself; otherwise discretionary

Pennsylvania courts award prejudgment interest automatically only when the damages amount is fixed by the contract or calculable from contract terms or market prices. For unliquidated damages (very common for construction consequential damages), awarding interest and picking the accrual date is left entirely to the trial court's discretion.

Citation: Cresci Constr. Servs., Inc. v. Martin, 2013 PA Super 66 (Pa. Super. Ct. 2013)

Source: https://www.pacourts.us/assets/opinions/Superior/out/S37031R_12.pdf

Link goes to the Pennsylvania courts' own copy of the opinion (official primary source, not a law-firm summary). Most construction consequential-damages claims are unliquidated, meaning you should not assume you'll automatically get prejudgment interest, or any particular start date, without a liquidated-damages clause or similarly fixed contract figure.

Accrual: property damage / tort claim

Not date-of-loss: Pennsylvania instead awards 'delay damages' starting one year after the defendant is served, at prime rate + 1%

Pa.R.C.P. 238 adds 'damages for delay' to a compensatory award in bodily injury, death, or property damage actions, calculated from one year after the original process was first served against that defendant until the award/verdict, at the prime rate (per the first Wall Street Journal edition of the year) plus 1%, uncompounded. Periods where the defendant made a settlement offer the plaintiff's recovery didn't beat by more than 25%, or where the plaintiff caused delay, are excluded from the calculation.

Citation: Pa.R.C.P. 238

Source: https://www.law.cornell.edu/regulations/pennsylvania/231-Pa-Code-r-238

This mechanism is unlike most states: it is not tied to the date of loss and does not start until a year after service of process, so filing and serving promptly is what starts the clock.

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Actual Cash Value & Property Loss in Pennsylvania

How ACV is determined, whether labor cost can be depreciated and the rules on releasing withheld recoverable depreciation.

Actual Cash Value rule

Replacement cost minus depreciation

Pennsylvania treats ACV as replacement cost less depreciation under case law. Gilderman and Kane address contractor overhead and profit on partial losses and later decisions have continued to refine what may be depreciated.

Citation: Gilderman v. State Farm (1994); Kane v. State Farm (2003)

Source: https://www.pacourts.us

This is case law rather than statute and it is still developing on what can be depreciated.

ACV statute or regulation

No Pennsylvania statute or regulation defines an ACV calculation method or restricts depreciating labor. The rule comes from case law.

31 Pa. Code Chapter 146 (Unfair Insurance Practices), including § 146.7 on prompt and fair settlements and § 146.8 on automobile settlements, contains no definition of actual cash value, replacement cost or depreciation and no property-specific valuation section. Pennsylvania case law, including Canulli v. Allstate and Papurello v. State Farm, treats ACV and labor depreciation as a matter of policy interpretation and generally permits depreciating labor where the policy defines ACV as replacement cost less physical deterioration.

Citation: 31 Pa. Code 146.7, 146.8 (reviewed; neither addresses property ACV or labor depreciation)

Source: https://www.law.cornell.edu/regulations/pennsylvania/31-Pa-Code-SS-146-7

Recoverable depreciation holdback

No Pennsylvania statute or regulation sets the timing or process for paying withheld recoverable depreciation, so the policy terms control.

Pennsylvania insurance regulations (31 Pa. Code Chapter 146, unfair claims settlement practices) address general claims-handling and betterment/depreciation documentation requirements, but no provision specifically sets a deadline or procedure for releasing recoverable depreciation once repairs are complete. This appears to be governed by individual policy terms rather than statute.

Source: https://www.pacodeandbulletin.gov/secure/pacode/data/031/chapter146/subchapAtoc.html

Delay Claims in Pennsylvania

Whether a no-damages-for-delay clause will be enforced against you and the deadline for bringing a construction contract claim.

“No damages for delay” clause enforceability

Not enforceable against a government agency where the agency committed constructive fraud or active interference

Pennsylvania's Commonwealth Court held that a no-damages-for-delay clause offers a government agency no shield from liability where the agency engaged in constructive fraud, meaning it had prior knowledge of problematic site conditions, failed to disclose that knowledge, instead giving misleading information, or where the agency actively interfered by directing the contractor to begin work while withholding material information needed to perform it. Pennsylvania contracts also carry an implied duty of good faith and fair dealing that limits how strictly these clauses can be applied.

Citation: Dep't of Gen. Servs. v. Pittsburgh Bldg. Co., 920 A.2d 973 (Pa. Commw. Ct. 2007)

Source: https://caselaw.findlaw.com/court/pa-commonwealth-court/1469275.html

This decision involved a government agency. Whether the same exceptions apply in the same way against a private owner is unsettled.

Construction contract filing deadline

4 years for a written contract claim

Pennsylvania's general limitations period for a written contract claim is widely described as 4 years under 42 Pa. C.S. § 5525, covering an ordinary construction-contract breach or payment dispute. Two deadlines sit in front of that one on most construction claims. A mechanic's lien and a payment bond claim each run on their own, far shorter clock, counted from last furnishing rather than from breach and missing either one removes the security while leaving the contract claim alive but unsecured. Check those dates first. Accrual is the other half of the question: the period runs from breach, which on a payment dispute is usually the date payment came due rather than the date the work was done.

Citation: 42 Pa. Cons. Stat. § 5525

Source: https://www.legis.state.pa.us/WU01/LI/LI/CT/HTM/42/00.055.025.000..HTM

A separate twelve-year statute of repose, 42 Pa. C.S. § 5536, applies to construction-related injury and defect claims rather than an ordinary payment dispute. Check which one governs your claim.

Labor Burden Inputs in Pennsylvania

The state-specific rates and requirements that sit underneath a fully burdened hourly labor cost.

State unemployment insurance (SUTA)

New employer rate 3.822% (non-construction) or 10.5924% (construction). Experienced employers range from 1.419% to 10.3734%. Taxable wage base is a static $10,000.

Pennsylvania's 2026 unemployment compensation rates are unchanged from 2025. Non-construction new employers pay 3.822%, while new construction employers pay a substantially higher rate of 10.5924%, reflecting the industry's claims history. Non-delinquent experienced employers range from 1.419% to 10.3734%, inclusive of a 9.2% surcharge adjustment and a 0.6% additional contributions tax layered onto the base rate. Pennsylvania's taxable wage base is fixed by statute at $10,000 per employee and does not adjust annually as many other states' bases do.

Citation: Pennsylvania Department of Labor & Industry, Office of Unemployment Compensation

Source: https://www.pa.gov/agencies/dli/resources/for-employers-and-educators/how-to-file/uc-tax/uc-tax-rates

Last checked: 2026-08-26

New construction employers pay 10.5924% against 3.822% for everyone else, the largest gap of any state here. The $10,000 wage base is fixed by statute and does not adjust annually.

Workers' compensation rating

Independent rating bureau state. Pennsylvania does not use NCCI; rates and class codes are set by the Pennsylvania Compensation Rating Bureau (PCRB), the state's own independent rating organization.

Pennsylvania is one of a small number of states that maintains its own independent workers' compensation rating bureau rather than relying on NCCI. The Pennsylvania Compensation Rating Bureau (PCRB) develops loss costs, classification codes and experience-rating plans specific to Pennsylvania, which licensed private insurers use as the basis for filed rates. Pennsylvania is a competitive state, not monopolistic, employers may purchase coverage from any authorized private carrier, but PCRB rather than NCCI supplies the underlying rating data.

Citation: Pennsylvania Compensation Rating Bureau (PCRB)

Source: https://pcrb.com/

Prevailing wage law

Pennsylvania has its own prevailing-wage law, the Pennsylvania Prevailing Wage Act of 1961 (Act 442), applying to public works contracts with an estimated cost over $25,000, with a $100,000 threshold for certain locally funded highway and bridge projects.

The Pennsylvania Prevailing Wage Act (Act of 1961, P.L. 987, No. 442) requires payment of prevailing wage rates on public works contracts for construction, reconstruction, demolition, alteration, or repair paid for in whole or in part with public funds, where the estimated total project cost exceeds $25,000. A project may not be artificially divided into smaller components to fall below this threshold. A higher threshold of $100,000 applies to locally funded highway and bridge projects contracted after January 1, 2014.

Citation: Pennsylvania Prevailing Wage Act, Act of 1961, P.L. 987, No. 442

Source: https://www.pa.gov/agencies/dli/resources/forms-and-documents/labor-law/prevailing-wage-projects

Construction Site Injury & Third-Party Liability in Pennsylvania

OSHA enforcement structure, how much weight an OSHA violation carries in a negligence case and whether an injured worker's own employer can be pulled back in.

Comparative / contributory negligence rule

Modified comparative fault, recovery barred above 50% fault (51% bar)

Recovery is reduced in proportion to fault and barred once the worker is more than 50% at fault. A worker exactly 50% at fault still recovers half.

Citation: 42 Pa.C.S. § 7102(a) (bar); § 7102(a.1) (Fair Share Act apportionment); § 7102(a.2) (which nonparties may be apportioned and the express exclusion of an employer immune under the Workers' Compensation Act)

Source: https://www.legis.state.pa.us/WU01/LI/LI/CT/HTM/42/00.071.002.000..HTM

Verified against: statute text of 42 Pa.C.S. s 7102, subsections (a), (a.1) and (a.2), including the express exclusion of an employer immune under the Workers' Compensation Act, as published by the Pennsylvania General Assembly

Pennsylvania measures the worker against the defendants sued, aggregated and bars only where the worker's share is greater. An even split recovers.

The comparison set is closed and the statute names the immune employer to keep it out. s 7102(a.2) admits only a defendant or other person 'who has entered into a release with the plaintiff' and is not a party and then says: 'A person whose liability may be determined pursuant to this section DOES NOT INCLUDE AN EMPLOYER to the extent that the employer is granted immunity from liability or suit pursuant to... the Workers' Compensation Act.'

So on a construction site the injured worker's employer cannot be placed on the verdict sheet at all. A settled co-defendant can, on appropriate requests and proofs. Nobody else.

This is the mirror image of Louisiana. Article 2323(A)(1) names the Louisiana exclusivity provision by section number in order to COUNT the immune employer's share; s 7102(a.2) names the Pennsylvania Act in order to EXCLUDE it. Two legislatures, the same question, opposite answers, both written out in terms.

Two subsections of this section are printed in the official code marked '(Unconstitutional)'. s 7102(b.1) and s 7102(b.2) appear with that word in place of their content. s 7102(b.2) carried the heading now used by (a.2) and contained materially the same nonparty rule; it is not the law and the live provision is (a.2). Anyone quoting subsection (b.2) is quoting a dead provision.

A 60% line sits alongside the 50% one. Under s 7102(a.1)(3)(iii) a defendant held liable for not less than 60% of the total apportioned liability is jointly and severally liable for the whole award; below 60%, liability is several only. New Jersey draws the same line at the same percentage.

Non-economic damages cap

No general cap on non-economic damages

Most states cap non-economic damages only in medical malpractice actions, which does not reach a third-party construction claim. Economic losses, medical bills, lost wages, future earning capacity, are not capped by these statutes.

OSHA plan

Federal OSHA (no state plan)

Pennsylvania has no OSHA-approved state plan; both public and private employers fall under federal OSHA jurisdiction. Under federal jurisdiction the citation is issued by an OSHA area office and contested before the federal Occupational Safety and Health Review Commission. Federal OSHA does not cover state and local government employees, so a public employee injured on a public job falls outside it. Reporting deadlines are a work-related fatality within 8 hours, an inpatient hospitalisation, amputation or loss of an eye within 24 hours. For a construction claim the inspection file matters more than the citation: photographs, measurements, witness statements and the inspector's narrative are usually obtainable and are often the best contemporaneous record of the site.

Citation: 29 U.S.C. § 667 (State Plan roster)

Source: https://www.osha.gov/stateplans

Weight of an OSHA violation in a negligence case

OSHA standards are evidence of the standard of care in Pennsylvania, not negligence per se. The state Supreme Court has not ruled.

The Superior Court of Pennsylvania held that a trial court's jury instruction was insufficient because it failed to indicate that a defendant's conduct should be measured in light of existing OSHA standards, confirming that OSHA standards inform the standard-of-care analysis as evidence, consistent with the majority rule.

Citation: Wood v. Smith, 495 A.2d 601, 603 (Pa. Super. Ct. 1985).

Source: https://storage.googleapis.com/jnl-bcls-j-bclr-files/journals/1/articles/232/63a30c0a100a2.pdf

Third-party contribution against the employer

Pennsylvania's statutory-employer doctrine can extend immunity to a GC within a contracting chain; a real shield, not just an employer-level protection.

Beyond the general exclusivity bar, Pennsylvania's statutory employer doctrine can immunize a qualifying GC/contractor higher up the chain from third-party suit, on top of possession/control, active-participation, retained-control and premises analysis for non-immune parties.

Citation: 77 Pa. Cons. Stat. §§ 481, 501; Farabaugh v. Pa. Turnpike Comm'n, 911 A.2d 1264 (Pa. 2006)

Source: https://caselaw.findlaw.com/court/pa-supreme-court/1493879.html

Injury-severity gate on contribution claims

General exclusivity, but Tooey v. AK Steel recognizes a limit for occupational-disease claims falling outside the Act's time bar; the statutory-employer doctrine can extend immunity up the contracting chain.

77 Pa. Cons. Stat. §§481 and 501 generally make compensation exclusive against the employer, but third-party claims remain available. Pennsylvania's statutory employer doctrine can extend immunity within a contracting chain. In practice exclusivity takes the direct employer off the tort table entirely, whatever the OSHA file shows. The claim runs against the other parties on the site: the general contractor, the owner, another subcontractor, an equipment manufacturer. The employer or its carrier then asserts a lien against whatever the worker recovers from those parties, so the figure the worker actually keeps is the recovery less the lien, the fee and the costs. Whether the lien is reduced for the cost of obtaining the recovery is a separate state question worth asking early, because it moves the net more than most people expect.

Citation: 77 Pa. Cons. Stat. §§ 481, 501; Tooey v. AK Steel Corp., 81 A.3d 851 (Pa. 2013)

Source: https://codes.findlaw.com/pa/title-77-ps-workers-compensation/pa-st-sect-77-481.html

Distinctive state doctrine

Tooey v. AK Steel is a distinctive limit on exclusivity specifically for occupational-disease claims that fall outside the Workers' Compensation Act's time bar: not a general intentional-tort exception like most states.

Rather than piercing immunity for egregious conduct (the more common exception pattern), Pennsylvania's Tooey exception addresses a structural timing gap: diseases that manifest after the Act's exclusivity period would otherwise leave a worker with no remedy at all.

Citation: Tooey v. AK Steel Corp., 81 A.3d 851 (Pa. 2013).

Source: https://caselaw.findlaw.com/court/pa-supreme-court/1650758.html

Put these Pennsylvania rules to work on your own numbers

ClaimDuke's calculators compute delay and extended overhead (Eichleay), fully burdened labor rates, ACV/RCV property loss, claim interest and construction-injury settlement ranges. Every calculation is free and live; a documented, citation-backed report is $19.

This page is reference information for your own verification. It is not legal advice and is not a substitute for confirming the current rule with the official source linked above or with counsel. Several states' interest rates float and reset on a schedule (monthly, quarterly or annually), so always check the live source for the figure as of today rather than relying on what is shown here. Which rule actually applies to your specific claim is itself a legal question this page cannot answer for you.