Home>Levelset Community>Legal Help>liens, waivers, contracts

liens, waivers, contracts

Ive recently had a few contractors breach their contracts by either failing to completing their workscope failing to complete their workshop on time also failing to complete punchlist corrections on their workscope. The contracts state payments will be make once the workscope is finished an signed off, the contract also states there will be liquidated damages for work not being completed in the time given. We were forced to have other contractors complete their work, however these contractors still filed liens against the property. Can we have sub contractors fill out conditional lien waivers

1 reply

Feb 5, 2020

Before getting too far along, it's worth mentioning that a contractor's mechanics lien won't be invalidated simply because the amount owed is in dispute, or because their workmanship is being called into question. Though, in sorting out a mechanics lien dispute, both factors will come into play and can be argued by both sides of the matter. But, that'd ultimately have to be settled by the court (if things come to that). As for conditional lien waivers - an owner can absolutely request conditional mechanics lien waivers from the project's subcontractors. And, considering conditional lien waivers aren't effective until payment has been received, it's possible subs might be willing to submit conditional waivers even amid a larger payment dispute. For more information on collecting waivers, this resource should be valuable: How To Handle Requesting & Tracking Lien Waivers.

0 people found this helpful

Helpful