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.
Government Contract Claims: When Appeal is Rejection of Settlement
Without a reservation of rights, appealing a Contracting Officer’s Final Decision is a rejection of any offer of payment or settlement included therein. So, the contractor had only three options.
Linking Obligations
If you want to bind the subcontractor to the prime in every way the same as the prime is bound to the owner, then the incorporation clause of the subcontract should be: . . .
Termination of Government Contracts for Convenience (T4C)
Imagine you’re a Government Contractor under a firm, fixed-price contract and you’ve done nothing wrong. Nevertheless, the Government has decided to unilaterally end its contract with you. Yes, the Government can do this...
Government Contractors: Build a Snowman in August
As a Government Contractor, when have you agreed to perform a certain way, but later realized that another way is better for everybody? When the Government agrees, expressly or impliedly, to the alternative performance, it waives a credit for the unperformed work.
Construction Dispute Settlement: Dealing with Details
Reap the benefits of settling a construction dispute by doing these things.
E-mail Signature Not Enough to Certify a Claim
Construction project professionals routinely send e-mails with “signatures,” which typically include the sender’s typewritten name, title, contact information, and/or company logo. But, this sort of e-mail “signature” is not enough to certify a claim to the Government.
Government Contractors: Ask for a “Sum Certain” in Your Claim
If your Claim includes an item for damages with an amount “TBD,” you could lose the entire Claim.
Contractors: Be Aware When Contracting with Virginia Public Agencies
Without a valid contract, a Virginia public entity has no duty to to pay for any of your work.
Constructive Acceleration
Contractors know that time is money. So, the point is clear when expressly told to “Speed Up! Go Faster!”
But, what do you […]
