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.
Jonathan Straw: Editor
CLOSING THE LOOPHOLE: ARIZONA ADDS PROMPT PAY PROTECTIONS TO REVITALIZATION DISTRICTS
Arizona contractors operating in public and quasi-public sectors sometimes rely on Prompt […]
Roads & Bridges | What Counts as a Contract Document
WHAT COUNTS AS A CONTRACT DOCUMENT
A recent decision clarifies how attachments and background reports can fall outside the contract
A DOCUMENT for informational […]
Roads & Bridges | Award Upheld in W. Va. Caisson Dispute
AWARD UPHELD IN W.VA. CAISSON DISPUTE
Federal court reinforces high bar for overturning arbitration
In 2018, the West Virginia Department of Highways (DOH) awarded […]
Roads & Bridges | Let the Contract Lead
LET THE CONTRACT LEAD
Documents offer guidance needed to manage risk without derailing projects
Construction is an industry of managed risk. Whether the prices […]
Roads & Bridges | When is an Invoice Really an Invoice?
WHEN IS AN INVOICE REALLY AN INVOICE?
All court decisions are opinions. Appellate court decisions are typically made by a panel of three […]
Roads & Bridges | Clarifying Punitive Damages
CLARIFYING PUNITIVE DAMAGES
In June 2021, the South Dakota Department of Transportation contracted for the demolition and construction of a bridge on State […]
Roads & Bridges | When Approximate Means Assumed Risk
WHEN APPROXIMATE MEANS ASSUMED RISK
A New York Court Shows How Performance Specifications Can Leave Contractors Holding the Bag
Sometimes when we are told […]
Roads & Bridges | From Roman Arches to AI
FROM ROMAN ARCHES TO AI
Can Construction Evolve Without Risk?
The construction industry blends old with new. From ancient Roman archways and aqueducts and […]
Roads & Bridges | Caught in the Middle
CAUGHT IN THE MIDDLE
New Mexico bridge case highlights the importance of written agreements for changes and delay compensation
In construction contracting, hope for […]
