No Lien Clauses: A 50-State Overview for the Construction Industry
Can You Waive Lien Rights Before Starting Work? Can you waive your right to file a mechanics lien or bond claim before you even begin working on a project? Attempts...
No Lien Clauses
This is the page for articles about no lien clauses. No lien clauses are exactly what they sound like – they’re clauses in a construction contract that prohibit contractors or suppliers from filing a mechanics lien down the road.
Fortunately, very few states allow no lien clauses. Colorado and Nebraska are the two states that do allow them, and contractors need to be extra careful when reviewing contracts in those two states. If you live in a state that prohibits no lien clauses, you should also be aware of the laws surrounding the issue. That’s because contract owners who violate the laws against these clauses can face serious consequences, and in some states where the law is conflicting, the result is often a long, drawn-out, and expensive court argument.
The best course of action when dealing with a no lien clause varies depending on your circumstances, and no two contracts will ever be the same. That’s why recommend you do your research if you encounter one.
If you can’t find the answers you’re looking for on our blog, you can check out the Expert Center for help. Construction attorneys answer questions from contractors on the Expert Center to provide them with free legal advice that helps them form a game plan and secure payment on every project.
Most Recent Posts on No Lien Clauses
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Florida Contractor Allegedly Sabotages Project Due To No Lien Clause
A Florida contractor was accused of sabotaging the elevators at a project in order to extort funds - the contractor claims he was merely securing payment.
Subcontractor Forced to Give Up Lien Rights Before a Project Starts? It Can Happen
When a construction contract contains language that requires a subcontractor or materials supplier to waive their lien rights when the contract is signed, and before the actual work on the...
CFM Review: What to Look For When Accepting or Declining a Job
Every Friday, we select a few articles from the week that we think are worth your time as a construction financial manager (CFM). We look for compelling articles not only...
Virginia Joins The Crowd On Liens: What Does It Mean?
First and foremost, thanks to my pal Scott Wolfe for the opportunity to discuss what is a major change in Virginia law regarding mechanic’s liens. I always appreciate the opportunity...
Virginia’s New Lien Waiver Law Makes Payment More Fair
More than 200 years ago, Virginia’s most famous son invented the mechanics lien concept to protect contractors and suppliers against non-payment on construction projects. In the 2015 legislation, Virginia’s lawmakers...
Ohio Supreme Court Gets Pay If Paid Decision Wrong, Hurts Subcontractors
The Ohio Supreme Court chimed in on “pay if paid” clauses last week, and it’s not good for subcontractors. In Transtar Elec., Inc. v. A.E.M. Elec. Servs. Corp., the court...
Can You Waive Lien Rights Before Work? [50-State Map and Analysis]
Can You Waive Lien Rights Before Starting Work? Can you waive your right to file a mechanics lien or bond claim before you even begin working on a project? Attempts...
Mechanics Lien Rights Cannot Be Waived – But Can They Be Reduced To Obscurity?
Most states prohibit parties from contracting out of their mechanics lien rights. A supplier or a subcontractor, in other words, cannot agree before starting a project that they will waive their...
New Texas Lien Waiver Laws Get Strict
Last August, we wrote about a Texas 14th Division Court of Appeals decision overturning a $20m judgment in favor of Zachry Construction. That case – Port of Houston Authority v....