House Bill 42 was submitted to the Virginia General Assembly on January 14 and would extend mechanic’s lien agent provisions to most commercial projects.
Why General & Specialty Contractors Should Oppose Virginia HB 42
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It weakens mechanic’s lien rights on commercial projects.
Missing a 30-day MLA notice — even unintentionally — means losing lien protection entirely. -
The notice deadline is too early to be practical.
Contractors must send notice before payment issues are known, creating a technical trap. -
It increases risk without improving payment.
MLA notices do not require owners or lenders to pay faster or differently. -
More paperwork, more cost, more exposure.
Increased admin burden and legal risk raise costs for GCs and specialty trades. -
It favors title insurance companies and lenders, not contractors.
Contractors assume more risk while others gain protection. -
Higher contractor risk means higher project costs.
Weakening lien rights leads to higher pricing, tighter credit, and fewer competitive bids.
Bottom line:
HB 42 shifts risk away from owners and lenders and onto contractors — without fixing payment problems.
ABC-VA member Jim Fullerton of Fullerton & Knowles, P.C., provides a full breakdown on HB 42, its affects on the construction industry, and what you can do in his report, Expanding Mechanic’s Lien Agent Requirements to Commercial Projects in Virginia.