Alabama Lien Waivers Guide and FAQs

No, Alabama does not require or provide statutory forms for lien waivers. Because the form and content of lien waivers aren’t regulated under Alabama’s Mechanics Lien Act, careful attention should be given to the actual terms of the waiver to ensure you’re not waiving more than intended.

• See: Should You Sign That Lien Waiver?

While Alabama does not have required lien waiver document templates, this doesn’t necessarily mean that “anything goes.” Lien waivers must not run afoul of the “public policy” protections in place for contractors, subcontractors, and suppliers.

Under Alabama case law, a waiver or an act equivalent to a waiver will only be binding if there is a clear intention, whether express or implied, between the parties to waive lien rights.

Many can (and do) argue about what is a “clear intention.” And these arguments can be unpredictable in court, and expensive. It’s important to remember that in Alabama, like in many states, lien waivers will be interpreted against the party who drafted the waiver, and any interpretation defaults will be guided by the public policy protections in favor of contractors, subcontractors, and suppliers.

No, nothing under Alabama’s mechanics lien laws prohibit the use of unconditional lien waivers. Accordingly, contractors, subs, and suppliers should be cautious when executing an unconditional waiver, particularly if they have not received payment yet.

If the waiver is explicit enough, it is possible for contractors and suppliers to waive their lien rights before actually being paid.

There is no specific statutory provision that prohibits the enforceability of waiving lien rights by contract in advance of performance. These so called “no-lien clauses” may be valid as long as the terms of the contract clearly express the intent to waive lien rights. Thus, contractors, subs, and suppliers in Alabama must be very careful when signing a construction contract.

• Dive deeper: Where in Alabama lien laws is it stated that no-lien clauses are unenforceable?

No, an Alabama mechanics lien waiver does not need to be notarized in order to be effective. There are very few advantages to getting a lien waiver notarized in Alabama, but if the contract and/or the hiring party are requiring waivers to be notarized, notarization will likely be required.

• Getting lien waivers notarized can sometimes be challenging, here are some Options for Getting Construction Documents Notarized Remotely.