RE: Subcontractor's Waiver of Liens
My question is, if we are requiring our subcontractors to sign conditional partial lien waivers with each progress payment, but we aren’t requiring them to provide lien waivers with all of their suppliers, are we still legally protected from a lien? It’s happened in the past that we have gotten signed conditional waivers from a subcontractor, but they didn’t pay their own suppliers and we are faced with a lien. How do we protect ourselves if the subcontractor states that he has paid off of his vendors/suppliers/2nd tier subcontractors? Seems like a lot of paper work to make sure that they give us a list of all of their suppliers on our projects, to ensure they are paying their vendors with the money we paid them. Just not sure of the legal ramifications of doing all of the paperwork to have a sub sign a lien waiver IF they indeed, didn’t pay their own suppliers/vendors for that project. Any suggestions?