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sending release forms

I file a prelim notice on a construction job. Am I REQUIRED to automatically send a Conditional or Unconditional Progress Release form to the contractor every month? I normally do only when requested and stated that to them. I am being told by one contractor that I am required by prelim law to send every month since I prelimed their job whether they ask or not. It is not specified in their contract either. Thank you

4 replies

Nov 10, 2020

No, there is no statuory requirement for you to submit a waiver and release each month.

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Nov 11, 2020

It is a good practice, by the entity paying you, to get a release in exchagne for a check but, no, I am aware of no such law.

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Nov 12, 2020

If you’re dealing with a general contractor, then sending conditional and unconditional lien releases are not legally required unless it’s part of your contract. If you’re dealing directly with a homeowner then you are required to give the homeowner lien releases. However, in my experience most contractors don’t give a homeowner a lien release unless the homeowner asks. I’m happy to answer any questions you have about this.

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Nov 23, 2020

Hi Cathleen - If I make a payment but a contractor does not send a receipt, lien release etc (as it's not part of the contract) - how much of an issue could there be? I requested them and he has been sending for the bulk of the payments, told me in email that there are no subcontractors but since we are disagreeing on what is agreed/not agreed, he stopped sending the releases and receipt for the last (large payment). If a contractor tells me there are no subcontractors but there really are, can one of them still come back and sue me if I was unaware of the sub? I have in email that everyone is 'in-house' no sub contractors but yet, the roofing, tile, framer etc I am pretty sure are subcontractors.

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