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Minnesota Waivers

  • No lien right can be waived or released without consideration.
  • A lien may not be waived in the contract.
  • A lien waiver given in exchange for either a bad check or a broken promise to make a payment may still be enforced against a lien claimant if a third person has relied on the waiver.
  • "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.
  • Conflicting payment language in a contract will not allow a contractor to delay payment for more than a reasonable time following the completion of subcontractor's work.

Retainage Provisions

Public

  • Retainage may not exceed 5 percent. If the work is satisfactory, the public agency may
    release or eliminate retainage. Contractors may substitute securities for retention. MINN. STAT. §15.72-3.

Private

  • Unless the contract provides otherwise, the owner may reserve retainage, not to exceed 5
    percent, and may reduce or eliminate retainage if progress is satisfactory. This provision does not apply to construction or improvements for residential real estate or contracts for professional services such as architecture, geoscience, land surveying, or interior design. MINN. STAT. §337.10.