Voids agreements that condition a subcontractor's or material supplier's right to commence a lawsuit or arbitration proceeding for breach of contract.

This bill amends the general obligations law to void agreements that condition a subcontractor's or material supplier's right to file a claim, commence a lawsuit or arbitration proceeding for breach of contract or quantum meruit, or commence an action on a payment bond. These agreements are deemed against public policy and unenforceable, except for insurance contracts, workers' compensation agreements, or other agreements issued by an admitted insurer. The changes apply to all contracts entered into, renewed, modified, or amended on or after the effective date of the act.

Voids agreements that condition a subcontractor's or material supplier's right to commence a lawsuit or arbitration proceeding for breach of contract.

This bill amends the general obligations law to void agreements that condition a subcontractor's or material supplier's right to file a claim, commence a lawsuit or arbitration proceeding for breach of contract or quantum meruit, or commence an action on a payment bond. These agreements are deemed against public policy and unenforceable, except for insurance contracts, workers' compensation agreements, or other agreements issued by an admitted insurer. The changes apply to all contracts entered into, renewed, modified, or amended on or after the effective date of the act.