Connecticut House Bill HB05165

Connecticut 2011 Regular Session

• Introduced: 1/11/11
• Refer: 1/11/11

Caption

An Act Concerning Mechanic's Lien And Bond Payment Claim Waivers In Construction Contracts.

Impact

The proposed changes are believed to offer significant benefits to small construction contractors who often find themselves at a disadvantage compared to larger firms. By limiting the application of bond payment claim waivers, the bill is designed to protect small businesses from potential payment issues and project delays that can arise when larger entities fail to uphold their contractual obligations, thus fostering a more favorable operating environment for smaller contractors. Conversely, it could also streamline operations for larger contractors who may find current regulations excessively cumbersome.

Summary

House Bill 05165 concerns mechanic's lien and bond payment claim waivers specifically in the context of construction contracts. The bill aims to amend the general statutes to apply the provisions of section 42-158l only to construction contracts that amount to twenty-five thousand dollars or less, as well as to subcontracts resulting from such contracts. This legislative move is positioned as a means to support smaller contractors by allowing them protection under the law while simultaneously providing larger contractors with greater flexibility in their contracting agreements.

Contention

While the bill appears to have merit from the standpoint of aiding small construction businesses, there are potential areas of contention among stakeholders. Larger contractors may argue that the current thresholds are unnecessary and restrict their ability to manage contracts efficiently. Additionally, there may be concerns expressed by advocates for greater consumer protection who worry that easing regulations for larger contractors could lead to greater risks for small subcontractors and weaken their negotiative power, ultimately affecting project standards and accountability.