The GC is requesting to sign "Partial Payment Release and Indemnity Agreement", even we haven't received the payment now. Can we Waive Rights Before Payment in the Massachusetts state?
1 reply
Aug 25, 2020
Massachusetts' mechanics lien statute doesn't prohibit waiving lien rights before payment is made or work is performed. However, that doesn't mean you necessarily have to sign a lien waiver in order to get paid. Payment is typically owed, regardless of whether the customer has a waiver in hand - and their preference that you waive lien rights before you get paid doesn't change that.
So, holding out, demanding payment first, or negotiating alternatives might make sense. What's more, once payment is made, the right to lien is lost anyway - so reminding your cusotmer of that and assuring them that you'll sign a waiver once you're paid could help. Or, offering a simultaneous transfer of the check and the waiver might work too.
Levelset discusses waivers further, here: Do I Have to Sign a Lien Waiver to Get Paid? For more on the MA lien waiver rules: Massachusetts Lien Waivers Guide and FAQs.