Construction Payment Litigation

Subcontractors Beware: General Contract's Fine Print May Govern Your Contract Too.

The Supreme Judicial Court recently exhorted subcontractors to make sure they know the terms of general contracts before agreeing to import them in a wholesale fashion into their own subcontract.

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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