Pennsylvania Outlaws Pre-Construction Waiver of Mechanics Liens as Against Public Policy
Pennsylvania has outlawed the widespread practice of obtaining lien waivers from contractors and their subcontractors (and their sub-subcontractors) prior to the start of a project. Such waivers on nonresidential projects are now “against public policy, unlawful and void, unless given in consideration for payment for the work, services, materials or equipment provided and only to the extent that such payment is actually received.” 49 Pa.C.S.A. § 1401(b). That same amendment also provides that a contractor must file a mechanics’ lien claim within six months after finishing its own work on the project (prior to the amendment, claimants had four months to file a claim). Also, prior to the amendment, if a subcontractor’s lien claim arose out of alterations or repairs, as opposed to construction or renovation, that subcontract had to provide preliminary notice of its intent to file a lien before completing its work. This idiosyncrasy has been removed from the statute.
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