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I have filed a mechanics lien and sent a conditional waiver on final payment. My client is asking me to remove a portion

North Carolina

My client is asking me to remove the portion of the waiver that says "Exceptions This document does not affect any of the following disputed claims for extras in the amount of: $4,000.00" I don't want to remove it until I know what it means.

3 replies

Apr 15, 2021

Lien waivers, particularly final lien waivers, contain some rather broad language. And one way for subcontractors to ensure they're not waiving more than intended, is to include an exceptions section. This section is meant to carve out any payments that have yet to be disbursed or are otherwise in dispute. This can include claims such as unpaid retainage, unapproved change orders, claims for delays, and the like. As far as whether or not you should remove that portion is ultimately a business decision that should be hashed out with the client. 

This article should provide some additional insight: 

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Apr 15, 2021

So would that section imply that there is an additional amount that they owe after paying what they owe on the lien filed? If so, I would need to remove this section because the only owe for one job. Would I have to resend the waiver or can it be edited?

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Apr 15, 2021

Yes, any amounts listed in the eexceptions section would imply that there is additional amounts owed beyond the amount listed in the waiver. As far as making any necessary changes, the choice is yours to either edit the form or send a new one. Note, however, If editing by hand, the party making the handwritten edits should generally initial next to any changes made. 

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