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.
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.