Georgia SB 315 Law Clarifies Construction Lien and Payment Bond Waiver Rights
Miller & Martin PLLC Alerts | August 31, 2020
Author: Neil Wilcove
In direct response to the Georgia Court of Appeals opinion in ALA Construction Services, LLC v. Controlled Access, Inc., 351 Ga. App. 841 (2019), the Georgia Legislature passed and Governor Kemp signed into law SB 315. One might recall that ALA Construction held that a subcontractor who failed to file an Affidavit of Non-Payment within sixty (60) days of signing a lien waiver, waived all rights to payment, including any contractual and equitable claims, not just lien rights.
SB 315 fixes the problem. Lien and bond waivers shall no longer be deemed to affect any other rights or remedies of the lien claimant, including any contractual or equitable claims. The corrected language also makes it clear the waiver language is for lien and payment bond rights. The statute also extends the time in which a lien claimant must file its Affidavit of Non-Payment from sixty (60) to ninety (90) days, which is consistent with the timing mechanisms for filing Claims of Lien.
What does this mean for you?
First, it means that as of right now, ALA Construction is the law in Georgia. Please make sure you are following the law and filing Affidavits of Non-Payment within sixty (60) days of signing your lien waivers.
Second, SB 315 comes into effect on January 1, 2021. The Georgia statutory lien waiver form will change. Please take note that your forms will need to change on January 1, 2021.
We Can Help
For more information about Construction contracts, contact attorney Neil Wilcove or any member of our Construction practice.