Under Massachusetts’ Prompt Payment regulations (254 CMR 4.00), the general contractor must pay subcontractors within 30 days after receiving payment from the owner, and if no dispute is timely asserted, interest at 1% per month accrues on late amounts. Your subcontract should mirror these statutory deadlines so that late payments automatically trigger the statutory interest and remedies without negotiation.

Massachusetts does not cap retainage by statute on private construction; retainage is a matter of contract negotiation. Your agreement should specify the exact retainage percentage, the release schedule (typically at substantial completion and final completion), and payment of statutory interest on withheld retainage.

While Massachusetts has not enacted a blanket statutory ban on pay-if-paid clauses, courts and statutes in most states treat "pay-when-paid" as a reasonable timing provision rather than an absolute condition. Check Massachusetts General Laws Chapter 149, § 29 (public) and Chapter 254 (private) (Massachusetts Lien Law); Prompt Pay at M.G.L. c. 149, App. § 29E et seq. for specific restrictions, and make sure your subcontract states that payment from the owner is not an absolute condition precedent to your right to be paid.

Massachusetts does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project, amount, and date. Conditional waivers are best practice until payment clears to preserve lien rights under M.G.L. Chapter 254. Never sign an unconditional waiver until payment has actually cleared your bank account, and make sure your waiver identifies the specific billing period and amounts to avoid losing lien rights on future work.

Massachusetts under M.G.L. c. 149, § 29C(2)(c) voids provisions in construction contracts requiring a subcontractor to indemnify another party for that party’s sole negligence or willful misconduct. Always read the indemnification clause carefully — even in states with anti-indemnity statutes, "broad form" indemnity for joint negligence is typically still enforceable.

Massachusetts requires recording a lien within 90 days after the last work or materials were furnished, followed by foreclosure within 90 days after recording. Massachusetts requires a short-form notice of contract to be recorded in the registry of deeds within 90 days of first furnishing labor or materials to preserve priority. Send statutory notices by certified mail or another trackable method, keep copies of everything, and calendar the deadlines immediately upon each project’s completion.