- Effective 7/1/15– Lien rights for subcontractors, lower tier subcontractors or material suppliers cannot be waived in a contract prior to their labor or materials being furnished. Prime/General Contractors, Specialty Trade Contractors and Design Builders should be cautious since they will not fall under the new bill and may still be required to sign lien waivers.
- A subcontractor is not bound by the waiver of a General Contractor.
- A waiver must be supported by consideration to be valid and binding. Consideration is sufficient if it includes an inducement to a lender to make a loan advancement to the owner.
- "Paid if Paid" is UNENFORCEABLE.
- "Pay when Paid" suggests time for payment.
- Pay-when-paid clause in the subcontract or purchase order does not create a condition precedent to payment.
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