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Contract says waive right to mechanics lien enforceable

ConnecticutMechanics Lien

The following two clauses are included in a contract we're reviewing: 11.3. To the fullest extent permitted by law, Subcontractor for itself and for its subcontractors, laborers and materialmen and suppliers and all others directly or indirectly acting for, through or under it or any of them covenants and agrees that no liens or claims, whether a mechanics’ lien or an attested account or otherwise, will be filed or maintained against the Project or premises or any part thereof or any interests therein or any improvements thereon, or against any monies due or to become due from the Owner to Contractor or from Contractor to the Subcontractor, for or on account of any work, labor, services, materials, supplies, equipment, or other items performed or furnished for or in connection with the Work, and the Subcontractor for itself and its Subcontractors, laborers, and materialmen and suppliers and all others above mentioned does hereby expressly waive, release and relinquish all rights to file or maintain such liens and claims and agrees further that this waiver of the right to file or maintain such liens and claims shall be an independent covenant and shall apply as well to work, labor and services performed and materials, supplies, equipment and other items furnished under any change order or supplemental agreement for extra or additional work in connection with the Project as to the Work covered by this Agreement. 11.4. If any subcontractor, laborer, materialman or supplier of the Subcontractor or any other person, directly or indirectly acting for, through or under it or any of them files or maintains a lien or claim, whether a mechanics’ lien or an attested account or otherwise, a mechanic’s lien or claim against the Project or Premises or any part thereof or any interests therein or any improvements thereon or against any monies due or to become due from the Owner to Contractor or from Contractor to the Subcontractor, for or on account of any work, labor, services, materials, supplies, equipment or other items performed or furnished for or in connection with the Work or under any change order or supplemental agreement for extra or additional work in connection with the Project, the Subcontractor agrees to cause such liens and claims to be satisfied, removed or discharged at its own expense by bond, payment or otherwise within ten (10) days from the date of the filing thereof, and upon its failure to do so Contractor shall have the right, in addition to all other rights and remedies provided under this Agreement and the other Contract Documents or by law, to cause such liens or claims to be satisfied, removed or discharged by whatever means Contractor chooses, at the entire cost and expense of the Subcontractor (such cost and expense to include legal fees and disbursements). The Subcontractor agrees to indemnify, protect, and save harmless Contractor and the Owner from and against any and all such liens and claims and actions brought, or judgments rendered thereon, and from and against any and all loss, damages, liability, costs and expenses, including legal fees and disbursements, which Contractor and/or the Owner may sustain or incur in connection therewith. What I'm reading here is that, essentially, we're not allowed to place a lien on the property?? Am I understanding this correctly? And that if anyone of our associates does, the Contractor will satisfy the liens with funds owed to us? We tried to have this stricken from the contract, but the Contractor told us that, per CT State Laws, even if it's in the contract, we can still file a lien but I can't find anything to back this up online. So I wanted to ask before sending this in.

1 reply

May 17, 2022

I’m so glad for all the information. Any provision in a construction contract that requires you to waive your lien rights before you start performing work.  

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