Can a Connecticut construction contract or periodic lien waiver give up mechanic's lien or payment bond rights in advance?
No, for work not yet performed and paid for. Any provision in a construction contract, or any periodic lien waiver issued under one, that purports to waive or release a contractor's, subcontractor's or supplier's right to claim a mechanic's lien or make a claim against a payment bond for services, labor or materials which have not yet been performed and paid for is void and of no effect (§ 42-158l(a)). Subordination of a mechanic's lien to a mortgage or security interest, and enforcement of an agreement to subordinate, are not prohibited by this section (§ 42-158l(b)).
The trap
The statute voids only waivers for work not yet performed AND paid for, so a waiver limited to paid work is outside it. And it applies only to a construction contract as defined in § 42-158i, a contract for construction, renovation or rehabilitation in this state on or after October 1, 1999: it does not reach public works contracts with the state, the United States, another state or a municipality, HUD-funded or HUD-insured projects, owner-contractor contracts of $25,000 or less (and their subcontracts), or buildings for residential occupancy of four or fewer units.
3 authorities
- statuteConn. Gen. Stat. § 42-158lenactment date not established
The words that state the rule
Any provision in a construction contract or any periodic lien waiver issued pursuant to a construction contract that purports to waive or release the right of a contractor, subcontractor or supplier engaged to perform services, perform labor or furnish materials under the construction contract to (1) claim a mechanic's lien, or (2) make a claim against a payment bond, for services, labor or materials which have not yet been performed and paid for shall be void and of no effect.
- statuteConn. Gen. Stat. § 42-158ienactment date not established
The words that state the rule
As used in sections 42-158i to 42-158n , inclusive, unless the context otherwise requires: (1) “Owner” means any individual, corporation, nonprofit corporation, partnership, limited partnership, limited liability company or other business entity that is the owner of record or lessee of real property upon which construction, renovation or rehabilitation is to be or is being performed pursuant to a construction contract regarding such real property. (2) “Construction contract” or “contract” means any contract for the construction, renovation or rehabilitation in this state on or after October 1, 1999, including any improvements to real property that are associated with such construction, renovation or rehabilitation, or any subcontract for construction, renovation or rehabilitation between an owner and a contractor, or between a contractor and a subcontractor or subcontractors, or between a subcontractor and any other subcontractor. “Construction contract” or “contract” does not include (A) any public works or other building contract entered into with this state, the United States, any other state, and any municipality or other political subdivision of this state or any other state, (B) a contract or project funded or insured by the United States Department of Housing and Urban Development, (C) a contract between an owner and a contractor for an amount of twenty-five thousand dollars or less or a subcontract which results from such a contract, or (D) a contract for a building intended for residential occupancy containing four or less units.
- statuteConn. Gen. Stat. § 42-158lenactment date not established
The words that state the rule
Notwithstanding any provision of subsection (a) of this section, this section shall not be construed to prohibit (1) the subordination of a mechanic's lien to the lien of a mortgage or security interest, or (2) the enforcement of an agreement to subordinate a mechanic's lien to the lien of a mortgage or security interest.
“Defective” means that reading found something to correct. What you are reading is the rule as it stands after that reading.