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Kansas Waivers


  • To be an effective waiver of a mechanic's lien, an agreement must be certain in its terms, clear and unequivocal
  • Lien rights cannot be waived in a contract before performing any work [K.S.A. § 16-1803(b)(2)].
  • A pay-if-paid clause does not waive lien rights [K.S.A. § 16-1803(c)].
  • "Paid if Paid" is enforced if explicit.
  • "Pay when Paid" suggests time for payment.
  • Pay-when-paid clause in the subcontract or purchase order does not create a condition precedent to payment.

Retainage Provisions

Public

  • 75-6909: Public improvement contracts; provisions for retention of moneys; release of moneys, when.  With respect to any contract to which this act applies of $1,000,000 or more, at any time before the public contracting entity releases the contract funds it has retained, the public entity may approve a request from the contractor that the retained funds be placed in an interest bearing escrow account.Upon request and approval by the public contracting entity, the contractor may substitute certain types of securities in lieu of retainage.
  • Statute 68-411: Partial payment on contracts; regulations for withholding For projects involving state roads, the maximum rate of retainage is 10 percent. 

Private

  • 16-1804: Retainage; failure to pay The maximum rate of retainage cannot exceed 10 percent of the value of the contract or subcontract.  If an owner, contractor or subcontractor fails to pay retainage, if any, pursuant to the terms of a contract for private construction or as required by this act, the owner, contractor or subcontractor shall pay interest to the contractor or subcontractor to whom payment was due, beginning on the first business day after the payment was due, at a rate of 18% per annum.