A new law is now in effect for contracts executed after November 6, 2014, that not only affects the amount of retainage that a construction stakeholder may withhold but also mandates processes for project completion. In short, the new law is a game changer. The summary below describes how the game has very recently changed in Massachusetts private construction.
DOES THE NEW LAW GOVERN MY PROJECT?
The new law applies to projects where the contract for construction is one for which a “lien may be established under sections 2 or 4 of chapter 254 on a project for which the person whose contract with the project owner has an original contract price of $3,000,000 or more . . . .” However, the statute does not apply to projects containing or designed to contain at least one but not more than four dwelling units.
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