Bill > H240

This bill amends Chapter 142A of the General Laws concerning residential construction contracts, specifically for properties with one to four housing units. It mandates that all such contracts between a property owner and a contractor must be in writing and include a clear provision informing the owner about the statutory mechanic's lien rights of building material suppliers and subcontractors who provide labor, materials, and services. A mechanic's lien is a legal claim against a property to secure payment for work done or materials supplied for its improvement. The bill requires contractors, with each payment request, to provide waivers of lien from all suppliers and subcontractors they have contracted with or received notice from, confirming that their lien rights are being waived for the work included in that payment. Furthermore, contractors must certify that the funds received will be used to pay these suppliers and subcontractors. If a contractor fails to obtain these waivers before receiving payment, they must hold those funds in trust for the benefit of the suppliers and subcontractors, and knowingly misusing these funds can lead to liability for damages. The bill also specifies that any contract provision attempting to waive or limit these protections is void and unenforceable.