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As a property owner, how do I collect lien waivers without knowing the exact contracted amount for each subcontractor?

South CarolinaLien Waivers

I am renovating a house in South Carolina and have a stip sum contract with my GC. I have line item costs broken down for each trade, but do not know the exact amount that each trade has been contracted by my GC. How do I request lien waivers from each subcontractor without knowing their contract value? Is it possible to leave the amount blank or "unspecified" and have each sub sign to show they have been paid in full? Will that be legally binding without an exact amount?

1 reply

May 27, 2020

If you don't have amounts, you can get a waiver of claims through a specified date. Below is some language you can use: For and in consideration of the payment made pursuant to this Interim Waiver and Release of Liens and Claims, (SUB/SUPPLIER'S NAME) (hereinafter “Supplier”) represents as follows: Any and all subcontractors, suppliers, laborers and materialmen that have furnished labor, materials or services to Supplier for use or incorporation into the design or construction of the improvements at the Project have been paid in full for all work performed and/or materials and labor supplied through and including the date of this Release and there are no outstanding claims of any character arising out of, or related to, Supplier's supply of materials, labor, or any other activities on, or improvements to, the Project through and including the date of (the execution of this Release OR enter specified date). In exchange for the payment of $1.00 and Supplier’s actual receipt thereof, as good and valuable consideration, the sufficiency of which is hereby acknowledged, the Supplier waives, quitclaims, and releases any and all claims and any and all lien or right to file a lien on or against the Project on account of work or materials furnished by, or through, the Supplier for the improvements of the Project through and including the date of (the execution of this Release OR enter specified date). Supplier further agrees to indemnify, defend (at Supplier’s sole expense) and hold harmless the property owner, from and against any and all claims arising out of, or related to, Supplier’s failure to pay any of its subcontractors, suppliers, laborers or materialmen for labor, materials or services they furnished to the Project.

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