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Lien Waiver requires price to match Contract, price dure is more than the price of the original contract

IowaLien Waivers

hello I have a lien waiver in front of me that states I would be waiving my rights to further payment after the contract is fulfilled. The issue is Insurance allotted more money to my company AFTER the contract signing and I need to make sure the customer still pays for the full amount. what can I do?

1 reply

Jan 24, 2020

Generally, lien waivers should reflect the actual amounts being paid. So, if the contract price has been inflated due to charge orders, etc. - then lien waivers would reflect that new, heightened amount. Discussing that with the party making payment might help to sort things out. But, if payment is in hand, the actual amount on the waiver might not matter all that much in the end. Which brings us to the next point - lien waivers and timing out payment. Timing a lien waiver can be tricky. It's common for a customer to want a lien waiver prior to making payment, which can be unnerving for a party who's supposed to be submitting a lien waiver. However, conditional mechanics lien waivers should help to fill the gap here. Conditional lien waivers are fully effective once payment is made. So, if a claimant submits a conditional lien waiver, they won't run the chance of waiving their lien rights without being paid for their work in full. For further discussion on the use of conditional waivers: Unconditional Lien Waivers vs Conditional Lien Waivers. So, to recap: If a claimant is worried about submitting a lien waiver but not getting paid in full - using conditional waivers can help to ensure payment. Plus, if waivers aren't matching up with the amounts actually owed, discussing that with the customer can help to clear things up. I hope this was helpful! For further discussion on the use of lien waivers, these resources should be valuable: - The Ultimate Guide to Lien Waivers in Construction (Meaning & Examples) - Do I Have to Sign a Lien Waiver to Get Paid? - Should You Sign That Lien Waiver?

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