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Home>Levelset Community>Legal Help>Hello, Can a supplier withhold an unconditional final release for a job that has been paid in full if we owe a balance on a completely different job?

Hello, Can a supplier withhold an unconditional final release for a job that has been paid in full if we owe a balance on a completely different job?

CaliforniaLien Waivers

There is a balance owed to a supplier on a different job that is in fact delinquent. The GC on that particular job is withholding payment due to some punch list items that they feel are inadequate.

1 reply

Aug 14, 2018
Waivers, like mechanics liens, are generally project/property specific. If a party has been fully paid, they no longer have the right to file a mechanics lien against and encumber the subject property. Accordingly, it doesn't really make any practical difference (regarding lien rights) whether an unconditional final waiver is provided, or not. However, from a different practical perspective (i.e. if other payments (to you, for example) are being withheld because a waiver from the supplier is not being provided) it matters quite a bit whether the waiver is received - whether or not it has any actual legal impact.

Since there is no ability for a fully-paid party to file an enforceable lien, there is no justification for withholding a final waiver.

Note, also, that if a conditional final waiver was provided, and the condition was met when payment was made, the conditional functions to waive all lien rights, as well.
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