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Georgia Lien Waiver Requirements- Replacement Contractor

GeorgiaLien Waivers

We are a replacement contractor in the state of GA. Our average job size is about $20K and we have about 2-3 subs that work on each project. We don't have any specific contract language that promises lien waivers, but have always provided them if a customer asks for it. We have only been asked maybe 2-3 times in the last 10 years to provide this. And when we have provided this in the past it was a single waiver from us that is conditional on final payment in full. We have customer that asked us for one and we provided them with what we usually do and they are saying that the lien laws changed in 2021 and that by law we cannot provide a single waiver and will need to provide a waiver from all subs and suppliers. I do see that law changes and we are updating our lien waiver to accommodate, but I do not see where it is required to provide waivers from all subs and suppliers. We pay our subs weekly on their completed work whether we have final payment or not. And we don't utilize the net 60 from our suppliers and pay them in full every month. So, what is our obligation here? do he have to provide these waivers from all subs and suppliers? or can we provide 1 from us the general contractor that will be sufficient? Also, if we do need to provide lien waivers for all subs and suppliers, what do we fill into the sub/supplier lien waiver where it says, "UPON THE RECEIPT OF THE SUM OF $__________"? do we fill in the project total we are collecting from the customer? or the total paid to the sub/supplier? Thanks in advance.

1 reply

Jan 17, 2022
You must provide only what your contract requires. As a practical matter, it is not unusual for an owner to want lien waivers from all subcontractors on the job, or even your own suppliers. There is nothing in the lien statute that requires you provide these lien waivers. If you do provide lien waivers from subs, then in the blank for "Upon receipt of ______" you would want to insert the amount then due to the individual subcontractor.
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