I'm the builder. We get lien waivers from our subcontractors when we make payment. Do the lien waivers that I'm getting protect us if the subcontractor does not pay his subcontractors? For example, if we paid & collected a lien waiver from a demolition company but our demolition company did not pay the dumpster company, are protected from the dumpster company filing a lien?
This is a great question. The answer depends on a number of variables. For example, if a notice of commencement was properly filed and the dumpster company failed to provide a notice to contractor, the dumpster company is barred from filing a valid lien. However, even if they file an invalid lien anyway you still will have to deal with it. The best practice is to have each subcontractor provide an affidavit that identifies all subs and suppliers used by that subcontractor and require statutory lien waivers from each.
It depends upon whether a Notice of Commencement has been filed and no Notice to Contractor. However, as a general statement, simply obaining a lien wiaver from a subcontractor does nto protect against lower tier lien claims.