Pennsylvania bill could increase payment protection for rental companies

Equipment rental firms in Pennsylvania, USA, may soon gain new protection against non-paying contractors. A bill now under review in the state Senate would give rental companies the right to file liens against projects if their equipment is used but not paid for, according to Mondaq, the specialist provider of business information to professional service firms.

Currently, if a contractor fails to pay for the use of rented equipment on a site, the supplier has little recourse beyond chasing the debt directly. Unlike suppliers of materials such as concrete, steel or wood, they can’t easily place a lien - a legal claim against an asset - on the project itself.

House Bill 1319 would recognize rented equipment as critical to construction and allow rental firms to use liens to secure payment.

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For rental companies, it would provide better leverage to get paid - it is more difficult to ignore invoices when a lien is on the table - and fewer collection headaches. It will also give rental companies the same protections as other suppliers.

The bill has passed Pennsylvania’s House of Representatives and is awaiting action in the Senate Judiciary Committee.