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IS IT UNLAWFUL FOR A GENERAL CONTRACTOR TO SIGN A LIEN WAIVER WITHOUT AUTHORIZATION OF SUBCONTRACTOR KNOWLEDGE?

4 weeks ago

IS IT UNLAWFUL FOR A GENERAL CONTRACTOR TO SIGN A LIEN WAIVER WITHOUT AUTHORIZATION OF SUBCONTRACTOR KNOWLEDGE?

Senior Legal Associate Levelset

A general contractor does not need to consult with, notify, or receive authorization from their subcontractor before submitting a mechanics lien waiver. Note, of course, that if a contractor swears or affirms that their subcontractors were paid, the contractor could find themselves in hot water and facing liability if they’ve attested to something that’s not true. Note also that if a subcontractor has filed a Georgia Preliminary Notice of Lien Rights, a prime contractor’s submittal waiver might not be all that concerning for their subcontractor.

For more background on Georgia lien laws and Georgia mechanics lien rights, here are two great resources:

– Georgia Lien Waivers Guide and FAQs
– Georgia Mechanics Lien Guide and FAQs

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