Tag: No Lien Clauses
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Mechanics Lien Rights Cannot Be Waived – But Can They Be Reduced To Obscurity?
Most states prohibit parties from contracting out of their mechanics lien rights. A supplier or a subcontractor, in other words, cannot agree before starting a project that they will waive their lien rights. These provisions – referred to as ‘no lien clauses‘ – are invalid in most jurisdictions because they violate “public policy.” The ‘no lien…
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Do Your Mechanics Lien Rights Make Pay When Paid Clauses Irrelevant?
In 1791, Thomas Jefferson introduced the first mechanics lien law legislation and invented a public policy interest in the United States to always protect contractors, suppliers, and subcontractors from the risk of non-payment. As we’ve explored in previous posts, the ensuing 220 years brought epic battles between legislatures, courts, and parties about who should get…
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Getting Paid: A War Between Policy, Contract & Tempers
Who gets screwed when money gets tight on a construction project? That is the question, and for over 200 years the United States’ legislatures, courts and construction industry participants have been in a tug-of-war over who bears the ultimate financial risk. This article discusses the debate and reports on the current state of affairs. Getting…
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California Mechanics Lien Law: Can Lien Rights Be Waived Before Work Is Commenced on a California Project?
We recently received a question from a blog reader inquiring about lien waivers, and specifically, whether signing a contract with a no-lien clause extinguishes that party’s right to claim a lien in California. We have previously addressed lien waivers generally here. Lien waivers pre-contract, or no-lien clauses written into the contract itself, are sure to…
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Waiving Lien Rights in Illinois is Hard to Do
On the Construction Payment Blog, we’ve written about lien waivers in the past. In some states, lien rights can be waived before the start of a project (like in Virginia). In others, law and public policy prevent such waivers (like in Louisiana). A new law blog on Mechanic Lien Law in Illinois just posted on…