A subcontractor is performing a project for our local sewer District for a storm project and will be paid by the sewer district. The subcontractor damaged my shed. They are going to send payment to replace the shed but want me (the homeowner) to sign a lien waiver. Why can’t I just get a check with a written agreement noting that this problem has been satisfied and I will not pursue further payment. I feel Like my home is in jeopardy if I sign a lien waiver.
Practically speaking, if lien waivers are used appropriately and as they are intended, it doesn't really matter who signed them. The lien waiver acts as a receipt of payment and nobody needs to lien anything if payment has been received.
A lien waiver is a document that a potential lien claimant (someone that works on your project or property) signs stating that they waive future lien rights against your property for the extent set forth (or the "amount") in the lien waiver. A lien waiver is like a receipt of payment, and are created in the benefit of property owners since it can be nearly impossible to know for certain that all subs, sub-subs, and suppliers working on your project got paid. A lien waiver may benefit you because you want to finish the project without any lien or bond claims, and collecting signed lien waivers helps you do that.
Missouri is one of the 12 states that have mandatory lien waiver forms that must be used on construction projects. A mandatory form is a good thing because it removes any confusion regarding whether you're using the correct form or if the form contains the correct language. The mandatory form also removes any need to negotiate the waiver language since that language is already set.
As a property owner wanting to avoid a mechanics lien , you should make it clear that contractors need to submit a conditional lien waiver with their pay apps. Subcontractors and suppliers should be happy to provide conditional waivers, because they only waive lien rights once they receive payment. A signed conditional lien waiver protects the property from the threat of a lien once payment is complete.