Virginia Enacts Legislation Prohibiting Advanced Mechanic's Lien and Payment Bond Waivers for Subcontractors and Suppliers
June 22nd, 2015
Provisions in Virginia construction contracts which require subcontractors, lower-tier subcontractors, and material suppliers to waive their lien rights, right to assert payment bond claims, or the right to assert claims for additional costs in advance of providing labor or materials are now void and invalid. This change results from Governor McAuliffe’s recent approval of SB 891, adding Section 11-4.1:1 to the Virginia Code and amending Section 43-3. Although the amendments go into effect July 1, 2015, the General Assembly did not include any provision restricting the amendments to contracts entered into after July 1, 2015, so this new law may invalidate blanket waiver provisions in contracts entered into prior to the effective date of the statute. This amendment does not prohibit or invalidate releases of liens or claims provided after labor or materials are furnished or in provided in exchange for payment.
Categories: Legal Updates