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Lien waver

South Dakota

I am an owner and have a lump sum contract with the GC ($700,000 lump sum and about $100,000 I requested for extras). I want to protect myself from subcontractors filing potential lien (if the GC did not pay them). Can the GC refuse me a request for lien waver from all subcontractors?

1 reply

Oct 27, 2020

That's a great question! You can be held responsible even if you paid the GC fully, therefore it is always a good idea to request lien waivers from all parties involved on your project, even if you only have a contract with the GC. Many states' lien laws include a stipulation that the GC must provide a list of all their hired parties to the property owner if the owner requests such information. 

South Dakota lien waivers are mostly unregulated. The South Dakota law doesn't explicitly state what a lien waiver must say to be effective and doesn't provide lien waiver form templates that construction participants can use to make sure the waiver is valid. 

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