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Can a customer withhold payment and require completion of a supplier waiver?

This customer has been withholding payment from us since 3/17/21 stating supplier waiver's are required. While we do have opportunity to improve our supplier waiver process, completing the waiver request is in process. Is it legal for the customer to withhold payment until the waiver's are completed?

1 reply

May 5, 2021

Your question is not clear, but generally if you are a material supplier and you either delivered a notice to owner or you still have time to do so, then it is an "improper payment" for a progress or final payment to be made without the waiver. Depending on the language in your contract, generally so long as you have the right to file a lien, payment may be held absent a lien waiver for the payment.

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