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Is it okay to combine several past due invoices into one final invoice?

CaliforniaSlow Payment
Anonymous Subcontractor

Will combining the past due invoices void the prior issued conditional waivers? Is it bad for us as a subcontractor to combine the past due invoices into one final invoice and issue a final conditional waiver for the total amount due?

1 reply

Levelset Admin at Levelset
| 1,007 reviews
Feb 19, 2020
If a conditional mechanics lien waiver has been given at some point during a job, later combining unpaid invoices into one final invoice won't have any affect on the viability of a waiver previously given. Plus, if a conditional waiver was given at some point, but if payment wasn't actually made on that waiver, then the waiver wouldn't be fully effective anyway. Practically, it makes sense to round up all unpaid amounts on the job and request payment at the end of the job. However, I'll be the first to admit I'm no accounting expert. So, from an accounting standpoint, I'm not sure whether it'd be acceptable to combine unpaid portions of past invoices to then combine them together for a final invoice on the job. For clarity there, it'd be wise to consult a construction accountant to ensure everything's above board. Alternatively, it might instead be easier to identify the unpaid portions of prior invoices and asking a customer to square away those invoices before proceeding to final payment.

Additional resources on California mechanics lien waivers

For further discussion on California lien waivers, these resources will cover a lot of ground: - California Lien Waivers Guide and FAQs - California Lien Waiver Forms & Guide – All You Need to Know
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