Real Estate & Lease Litigation: August 2012 Archives

In Public Projects, Subcontractors' Payment Bond Rights Are Not Waive-able

A recent Supreme Judicial Court decision should provide subcontractors who perform work on public projects with welcome assurance that payment bonds provide meaningful protection against non-payment. In Costa v. Brait Builders Corp., 463 Mass. 65 (2012), the SJC held squarely that a subcontractor's rights under a statutorily required payment bond cannot be waived in a private contract between subcontractor and general contractor. Since mechanic's liens are unavailable in public projects, we at Fitch Law Partners LLP view the security Costa affords subcontractors as important.

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