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<p class="MsoListParagraphCxSpFirst"><span style="font-size:14.0pt;line-height:106%">This is the bill summary, and it sounds benign:
<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle"><span style="font-size:14.0pt;line-height:106%"><o:p> </o:p></span></p>
<p class="MsoListParagraphCxSpLast">“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.” <o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red">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.
<u>Lots of room for mischief</u>. We no longer have a standard NNP or lien release.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red">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.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red">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.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red">New language: <o:p>
</o:p></span></p>
<p class="MsoNormal">(<span style="font-family:"Courier New"">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
<u>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).
</u><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Courier New"">(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,
<u>unless the claimant has otherwise agreed to those provisions in the direct contract</u>.</span><span style="font-size:14.0pt;color:red">”</span><span style="font-size:14.0pt;color:red"><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#2F5496"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#2F5496"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><a href="https://www.npw-law.com/"><span style="color:#2F5496;text-decoration:none"><img border="0" width="671" height="231" style="width:6.993in;height:2.4097in" id="Picture_x0020_27" src="cid:image001.png@01D70B76.A8219AA0"></span></a><span style="color:#2F5496"><o:p></o:p></span></p>
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