{"id":899,"date":"2012-08-30T19:15:00","date_gmt":"2012-08-30T19:15:00","guid":{"rendered":"https:\/\/www.lienitnow.com\/blog\/index.php\/2012\/08\/30\/massachusetts-does-not-permit-waiver-of-statutory-payment-protection\/"},"modified":"2012-08-30T19:15:00","modified_gmt":"2012-08-30T19:15:00","slug":"massachusetts-does-not-permit-waiver-of","status":"publish","type":"post","link":"https:\/\/www.lienitnow.com\/blog\/2012\/08\/massachusetts-does-not-permit-waiver-of.html","title":{"rendered":"Massachusetts Does Not Permit Waiver of Statutory Payment Protection"},"content":{"rendered":"

The Massachusetts Supreme Judicial Court has held that a subcontractor\u2019s rights to pursue a payment bond required by law on a public project can\u2019t be nullified by contract. The payment bond law <\/a>does not expressly prohibit waiver by contract, and the court had to decide whether public policy concerns preclude enforcement of a contractual waiver. The case is Costa v. Brait Builders<\/a>, decided on August 1, 2012.
The surety had argued successfully at the trial court level that a subcontract clause waiving the sub\u2019s payment bond rights was enforceable, and the trial judge agreed. The surety had contrasted the payment bond law with a provision in the Massachusetts mechanic\u2019s lien law that expressly prohibits any attempt to require advance waiver of lien rights. On appeal, the SJC reviewed the purpose behind the payment bond law, which \u2013 according to its title \u2013 was \u201cfor expediting payment to general contractors and subcontractors and improving the flow of funds in the construction industry.\u201d The court also noted that payment bonds are required by three different construction procurement laws in the state. Thus, \u201cthe strong public policy behind the \u00a729 bond requirement renders unenforceable a provision purporting to waive claims against such a bond.\u201d
The court acknowledged that there are competing views on the general topic of private contracts waiving statutorily-granted rights, but concluded: \u201cWe think the better view is that [the payment bond law] embraces a substantial public policy, precluding waiver. Accordingly, we conclude that article 7 of the subcontract [waiving such rights] is unenforceable.\u201d The case has been remanded, and the surety will find itself on the hook for a judgment in favor of the sub issued after the original trial.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Massachusetts Supreme Judicial Court has held that a subcontractor\u2019s rights to pursue a payment bond required by law on a public project can\u2019t be nullified by contract. The payment bond law does not expressly prohibit waiver by contract, and the court had to decide whether public policy concerns preclude enforcement of a contractual waiver. 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