In an article published on April 28, 2017, by Construction Executive, Simon Bloom and Nick Phillips offer insight on how to reduce lien exposure with anti-assignment clauses. The article details that an “anti-assignment clause is a contractual provision precluding the subcontractor from further delegating or assigning its obligations under the subcontract to other subcontractors. By including this clause in their subcontracts, property owners and general contractors may eliminate exposure to liens filed by downstream, unknown subcontractors and suppliers.”

Bloom and Phillips emphasize, “Keep in mind, downstream subcontractors that provided labor or materials in good faith can become frustrated when it turns out they are precluded from filing a lien because of an anti-assignment clause. Accordingly, it is important for all parties to understand their rights with respect to these contractual provisions.”

For the full article, you may click here.