Bill > H1442

This bill amends Chapter 254 of the Massachusetts General Laws, primarily concerning construction contracts and the rights of subcontractors and suppliers to place liens on properties for unpaid work or materials. A key provision introduces a new definition for "due or to become due," which clarifies how to calculate the amount owed to a contractor or subcontractor, even if a contract is breached or terminated, by focusing on the difference between the total contract price plus extra work and payments already made, excluding consequential damages. The bill also modifies existing sections to ensure that liens, particularly for those without a direct contract with the original contractor, are limited to the amount due under the original contract or subcontract, unless specific notice requirements are met. For construction projects with one to four dwelling units, the bill creates an exception where liens are not limited by the original contract amount unless the owner obtains a statement from the lien claimant confirming payment of amounts due for which the owner had already paid the contractor, and similarly for subcontractors. Additionally, the bill mandates that contractors on these smaller projects must inform owners of their rights under this new section and hold payments received from owners in trust for the benefit of material suppliers and subcontractors, with penalties for failing to do so. Finally, it introduces a standardized statement form for reporting amounts due and paid on construction projects.