[CLC-Discussion] Construction Liens and Bonds - CS/SB 622 and HB 473

[RPPTL CLC-Discussion]

This is the bill summary, and it sounds benign:



“The bill provides that provisions of waivers and releases are unenforceable unless the claimant has otherwise agreed to those provisions in its direct contract. The statutory forms include a form to acknowledge payment for labor, services, or materials and a form waiver or release of a lien or the waiver of the right to make a claim against the contractor’s payment bond. Accordingly, provisions included in a waiver or release that release a party from other liabilities or waive other rights are unenforceable under the bill.”
But beware – now the onus is on everyone to read the “extra” provisions that will appear in contracts that can allow “anything” to be added to a waiver and release.  Lots of room for mischief. We no longer have a standard NNP or lien release.

We have the “Person who is holding the power, has the lawyers and holds the money-releases” and the plain release for the unwashed masses.

Is this a backdoor change by the surety industry to get what they could not get last time around? A bonded job will say that the Contract Documents include the Prime Contract and all attachments. Buried in there will be language making changes on what needs to be in a NNP. We will see an explosion in litigation is my guess when sureties deny claims as being improper.

New language:
(d) A person may not require a claimant to furnish a waiver that is different from the forms in paragraphs (b) and (c) in exchange for, or to induce payment of, a progress payment or final payment unless the claimant has entered into a direct  contract that requires the claimant to furnish a waiver that is different from the forms in paragraphs (b) and (c).
(f) Any provisions in a waiver which are that is not related to the waiver of a claim or a right to claim against a payment bond as provided in this subsection are unenforceable, unless the claimant has otherwise agreed to those provisions in  the direct contract.”



[cid:image001.png at 01D70B76.A8219AA0]<https://www.npw-law.com/>
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