Lien waivers are required on basically every construction project. They are one of the most important documents exchanged in the construction payment process. Lien rights provide valuable leverage against non-paying owners or GCs. So the act of waiving these rights should not be taken lightly. Getting the lien waiver exchange right to the first time can help keep the cash flowing on a construction project.
Lien waivers in Nevada must be executed in specific forms, this is because it is one of only 12 states that provide statutory lien waivers. The validity of these waivers depends on if the form matches the language provided in the statute. Adding additional terms or modifying the language provided, could result in an unenforceable lien waiver, and could further delay payment.
The Nevada lien waiver statute provides four different lien waiver forms; for the purposes of this article, we will focus on how to fill out a Nevada unconditional final lien waiver form.
Guide to Nevada unconditional lien waivers for final payments
Contractors should be absolutely sure this is the type of lien waiver they want. This waiver is both unconditional and final. Once this waiver is signed, all lien rights for the claimant on the project are waived.
If expecting any future payments, a progress waiver is a better choice. And, if no payment has been exchanged yet, a conditional waiver should be used instead.
How to fill out this waiver form
Not every project has a designated project name, however, if the contract documents include an official project name, add this here. If not, then simply fill in the property’s abbreviated address; something along the lines of 123 Road St.
The address of where the improved property is located goes here. The full mailing address is sufficient, a full legal description of the property is unnecessary on these forms.
This is the name of the person who hired you on the project. Whether it be the owner or the GC who hired you, the name of the person you signed a contract with goes here.
Invoice/Payment application number
Including the pay application or invoice number is a way to ensure that the lien waiver information matches up with the corresponding itemized pay request.
How much is the expected payment being made in exchange for the waiver? This is a final lien waiver, so this should be the amount needed to be received to close out the project.
Amount of disputed claims
This is a final lien waiver, so if there are any outstanding payment amounts such as retainage, change orders, or any other modifications to the scope of work go in this section.
This is the date the waiver was signed.
Company name, signature & title
Add your name, company name and title in the company, to verify that you are authorized to sign the waiver.