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Lien Waiver – Supplier Information

2 weeks ago

We are a manufacturing company who uses third party manufacturing companies to build our products. We recently supplied a piece of equipment and the customer aka general contractor They asking us to fill out a very detailed conditional lien waiver before sending payment. However on the waiver they are asking for “all parties” who finished materials, supplies or labor to be listed, along with cost. Would we only list ourselves as we are the manufacture or do we need to list our third party manufacture and costs? Please see below for the exact verbiage.

“That all waivers are true, correct and genuine and delivered unconditionally and that there is no claim either legal or equitable to defect the validity of said waivers. That the following are the names of all parties who have furnished material or labor, or both, for said work and all parties having contracts or sub contracts for specific portions of said work or for material entering into the construction thereof and the amount due or to become due to each, and that the items mentioned include all labor and material required to complete said work according to plans and specifications:”

Senior Legal Associate Levelset

All suppliers get their inventory, necessary inputs, and raw materials from somewhere, but it’s typically not necessary that a supplier list their manufacturer or supplier in a lien waiver. If a manufacturer is making or supplying parts for a specific project, then it might make more sense to include them on a waiver. But, if that manufacturer or supplier merely provides supplies for general inventory or manufacturing, then it’d be less likely that they’d need to be mentioned on a lien waiver.

Considering suppliers to a supplier aren’t even entitled to file a mechanics lien in Minnesota, it might be a moot point anyway. Generally, when a lien waiver requests all subcontractors and suppliers be listed on a lien waiver, that’s included to make sure everyone is paid for that job and won’t be filing a mechanics lien claim. So, parties that wouldn’t be able to file a lien claim anyway might not need to be included.

For more information on Minnesota mechanics lien rights and lien waivers:
(1) Minnesota Mechanics Lien Guide and FAQs
(2) Minnesota Lien Waivers Guide and FAQs

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