Georgia Implements Significant Changes in the Effect of and Requirements for Lien and Bond Waivers
Significant changes in Georgia’s Lien Law and its statutory mandated Lien Waiver forms went into effect January 1, 2021. The changes, enacted due to industry outcry over the effect of the Georgia Court of Appeals ALA Construction Services, LLC v. Controlled Access, Inc. decision, clarifies that waivers signed after January 1, 2021 do not waive contract rights but only lien and bond rights after the prescribed period for withdrawal.
The revised law makes other significant changes, including:
1. The filing and mailing of an affidavit of nonpayment is the only way to withdraw a waiver and release. The filing of a claim of lien will no longer withdraw a waiver and release.
2. The time for a claimant to file an affidavit of nonpayment to withdraw a waiver is increased from sixty (60) days to ninety (90) days to align with the time allowed for filing a claim of lien.
3. Statutory mandated waiver and release forms are no longer required to in Boldface Capital letters but are still required to in in at least 12-point font.
The updated Georgia chapter along with the three revised statutory forms required are now available to subscribers on LienlawOnline.com.