VB CGC Practice Group

VB CGC Practice Group
Vandeventer Black's Construction and Government Contracts Practice Group focuses on serving our business clients in the construction industry. We currently have offices in Norfolk and Richmond, VA, the OBX and Raleigh, NC, and Hamburg, Germany. For more information about Vandeventer Black, clink on the VB logo.

Monday, March 30, 2015

Pre-contract Bond, Contract or Mechanic's Lien Claim Waivers Nearing Statutory Extinction in Virginia

Virginia Governor McAuliffe proposed amendments on March 27, 2015 to Senate Bill 891S2 relating to lower tier claim rights, and their waiver.

First, he's proposed adding a new provision in Title 11, dealing with contracts generally, to add a new code section, Code Section 11-4.1:1, to void pre-waivers of payment bond claims and contract claims executed prior to providing any labor, services, or materials.

Second, he's proposed a similar pre-provision waiver of mechanic's lien rights to Code Section 43-3 that further, similarly, voids any such pre-waivers executed prior to providing any labor, services or materials.

Below is a link to the current proposed amendments of the Governor:
http://leg1.state.va.us/cgi-bin/legp504.exe?151+ful+SB891S2+pdf

Whether there is an intended distinction between the "in advance" and "prior to" language various used, as well as other interpretive aspects to the pre-waiver limitations, such as implications upon other contract payment terms, will remain to be seen if, as expected, the amendments are adopted to law.