General Contractors: When was the last time a private owner asked you to waive your lien rights before you did any work? If you do in the near future, you cannot require the same of your subcontractors and lower tiers.
The Virginia General Assembly has passed, and the Governor will soon likely sign, Senate Bill 891. Under the new and revised Code sections, subcontractors and lower tier subs and suppliers cannot waive their rights to liens or claims before providing labor and materials. This has been true in Maryland for nearly two decades.
This new Virginia law does not invalidate lien/claim waivers executed after a subcontractor or supplier provides labor and materials. Indeed, Virginia case law is supportive of lien/claim waivers executed after providing labor and materials. A court’s interpretation of the waiver will depend on the specific language used. So, the waiver language used should be precise and, under the new Code section, will only apply to labor and materials already furnished.
Take care when requiring that subcontractors and suppliers execute lien waivers before receiving payment, you may later be relying on the language in those waivers.
Roads & Bridges | Written Notice
WRITTEN NOTICE | Beware that strict compliance of the contract might be required.
When an owner replaced a contractor for significant safety violations, […]
Roads & Bridges | Mommie Dearest
MOMMY DEAREST | The story of an ESA without a MOM
Nobody enters this world, or a contract, without a mother: There can […]
IIJA | Does Closing a “Giant Loophole” Cost Contractors?
A recent article published by Roads and Bridges magazine reports that the Office of Management and Budget is working to broaden the scope […]
Roads & Bridges | Buy American Plan Gets an Update
BUY AMERICAN PLAN GETS AN UPDATE
The Office of Management and Budget is developing standards to replace the current Buy […]
Roads & Bridges
Where Does the Buck Stop?
WHERE DOES THE BUCK STOP? | A shallow concrete pour leads to an interesting lawsuit
On the desk of President Harry S. Truman […]
Roads & Bridges | Reshaping Agreements
RESHAPING AGREEMENTS | Oral Agreements Must Be Written in Stone
Reuse, reshaping, and/or reapplication of existing materials was the goal in this roadway […]
Pay-If-Paid Unenforceable in Virginia Starting Jan. 1, 2023
As of Jan. 1, 2023, pay-if-paid clauses are unenforceable, regardless of whether a surety/payment bond claim is involved. This is only for […]
How Short is Too Short
A limitations period is too short when it’s unreasonably short.
Construction Contracting Without Relief Clauses During COVID-19
What to do if your contract lacks the parts to handle COVID-19? Considerations for creating new contracts during COVID-19.
Jonathan J. Straw
Blog Author
Contact Jonathan
Partner | KraftsonCaudle.com
Download Jon’s Bio
