downturn in the economy when contractors and subcontractors were going out of business with increasing frequency:
When a party to a construction project defaults on its obligations, everyone else involved in the project is affected. Material suppliers may have been left unpaid, the bank must examine its potential liability, the surety must determine its exposure, and above all else, the work must be completed (Morrissey and Wallace 125).
The Georgia courts invalidated provision in the early 1990s regarding agreements to waive liens before the material or series are supplied, and these are no longer valid. Property owners and contracts therefore can no longer rely on blanket lien waivers to prevent liens from being placed on the property. The Georgia Court of appeals also ruled at that time on several lender liability issues to clarify further the potential exposure a bank has when it becomes heavily involved in a construction project:
The economic downturn has also led to an increasing number of surety claims as constructi
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