Bill > S167

This bill amends Chapter 142A of the General Laws to add a new section requiring that all written contracts for construction or improvements to 1 to 4 family housing units between a property owner and a contractor must include a provision informing the owner of the statutory mechanic's lien rights of building material suppliers and subcontractors. A mechanic's lien is a legal claim against a property to secure payment for labor, materials, or services provided for its improvement. The bill further mandates that with each payment request, contractors must provide waivers of lien from suppliers and subcontractors, confirming they have been paid for the work included in that request, and must certify that the funds received will be used to pay them. Contractors who fail to obtain these waivers before receiving payment must hold those funds in trust for the suppliers and subcontractors, and knowingly misusing these funds can lead to liability for damages. The bill also specifies the exact language that must be included in contracts to inform property owners about these lien rights, and any contract provision attempting to waive or limit these protections will be void.