Menu
Home>Levelset Community>Legal Help> subcontractor master agreement. within states: general release and waiver of lien rights.

subcontractor master agreement. within states: general release and waiver of lien rights.

New JerseyMechanics Lien

I am signing a subcontractor master agreement. within states: general release and waiver of lien rights. I need to submit the subcontractor agreement in order to receive work. If I sign this can I still lein if I do not get paid?

3 replies

Jun 14, 2022

It depends on 1) the language in the actual agreement; and 2) whether the underlying project is being constructed on land that is owned by a public or private entity. For privately owned jobs, the right to lien can only be waived to the extent that payment has been received (i.e. the waivers of lien which you are required to submit before your monthly invoice is paid). The statute governing public projects does not expressly prohibit general lien waivers, but that does not necessarily mean that such a lien waiver would be enforceable.  

See: https://www.bartjkleinlaw.com/construction-litigation/2015/11/25/is-it-legal-to-waive-municipal-mechanics-lien-rights-in-new-jersey/#:~:text=Waivers%20of%20construction%20lien%20rights,N.J.S.A.

I would think it depends on who the general contractor is. If they are a credentialed GC with a good reputation, their bolierplate master service agreement has likely been tailored to conform with NJ law. If it's being offered by a less-established or out-of-state GC, I would be a bit more circumspect.      

0 people found this helpful
Helpful
Jun 14, 2022
thank you
0
Report Spam
Jun 16, 2022
You should still have lien rights if you do not get paid. However, the proposed agreement likely has many payment term clauses that affect exactly when you would be entitled to payment, such as a clause that conditions your right to receive payment on your contracting partner getting paid. Depending on the size of this project and the amount of the contract, you should consider having an attorney review it so you can be aware of any pitfalls in the contract.
0 people found this helpful
Helpful