Does a General Contractor have to provide Lien Waivers to the homeowner when the General Contractor has contracted with subcontractors to do the work?
1 reply
Oct 24, 2019
It's extremely common for contractors to submit lien waivers in exchange for payment. Typically, lien waivers will act a lot like receipts. However, a Wisconsin contractor will generally not be required to provide a mechanics lien waiver unless their contract explicitly requires that waivers be exchanged for payment.
In fact, the Wisconsin mechanics lien statute explicitly allows a contractor to refuse to submit a lien waiver if they haven't yet been paid under § 779.05(1) of the Wisconsin mechanics lien statute. That section reads, in relevant part: "A lien claimant or potential lien claimant of whom a waiver is requested is entitled to refuse to furnish a waiver unless paid in full for the labor, services, materials, plans, or specifications to which the waiver relates."
But again, regardless of whether payment has been made, a contractor isn't required to provide one unless contractually obligated. Though, if a contractor has been paid, it might not make sense to make a lot of fuss over providing a waiver - whether that be a partial/progress waiver or a final waiver.
Additional resources
For further discussion on Wisconsin lien waivers, or for more info on lien waivers in general:
- Wisconsin Lien Waivers Guide and FAQs- The Ultimate Guide to Lien Waivers in Construction (Meaning & Examples)