The recent dramatic changes to Mississippi’s lien law scheme completely changed the landscape of construction security in Mississippi. Mechanics liens are now available to subcontractors, sub-subcontractors, and suppliers instead of only to original contractors. In order to benefit from those new-found lien rights, however, some parties may be required to send one or more of the newly created notices (whether traditional preliminary notice or notice of intent to lien). The changes do not stop there, however, the new statute is a complete reinvention of the entire construction security universe in Mississippi. Because of this, there were also big changes related to the treatment and structure of Mississippi lien waivers.
Mississippi Lien Waiver Law Sheds Some Ambiguity
A right to claim a lien or to claim upon a bond may not be waived in advance of furnishing of labor, services or materials.
In most states, an attempt to strip subcontractors and suppliers of lien rights at the beginning of a project – through “no lien clauses” or requiring a pre-work lien waiver – is unenforceable. However, along with a small number of states in which the process is allowed, there is a decent number of states in which the law is silent on the matter. As a practical…Read More