Should i fill interim waiver and release upon payment before receiving payment?

5 days ago

I own a garage door install company in Georgia and did a work for a construction company. the work is done and they ask me to fill up “interim waiver and release upon payment”
Should i fill before receiving payment?
Why they ask for it before the payed the invoices?

Additional info about this contractor
Project Role: Subcontractor
Project Type: Residential
Attorney and Owner The Storrs Law Firm
27 reviews

Its fairly typical for the subcontractor to be asked to submit a lien waiver form in advance of payment. The Georgia lien waiver form provides that the claimant waives the lien upon payment of the amount set forth in the waiver form.

By signing this lien waiver, a party is agreeing to waive their claims for all work completed on or before the date entered on the waiver. Its conditional, meaning that you are waiving your rights contingent upon getting the funds set forth in the waiver. However, the waiver automatically becomes unconditional after 60 days. If 60 days passes and you haven’t been paid, but don’t file a claim of lien or affidavit of nonpayment in the property records where the project is located, the law conclusively presumes you have been paid.

So, its safe to provide this prior to getting paid. But you should be paid the amount on the waiver within a few days, and need to take action BEFORE 60 days or you will lose rights.

Disclaimer: This forum is not a secure form of communication. Use of this forum to contact Richard J. Storrs or the Storrs Law Firm does not create an attorney-client relationship. No attorney client relationship exists with Richard J. Storrs or the Storrs Law Firm in the absence of a signed engagement letter. By use of this forum, you acknowledge that we may review any information transmitted and that this review does not preclude Richard J. Storrs or the Storrs Law Firm from representing another client directly adverse to you, even in a matter where that information could and will be used against you. The content of this response is provided for general information and does not constitute legal advice. Legal advice must be based on our complete understanding of the facts and circumstances of your particular issue, and you should seek the assistance of licensed and competent legal counsel for specific legal advice. Because case results depend on a variety of factors unique to each case, case results do not guarantee or predict a result in any future case. Richard Storrs is admitted to practice in the State of Georgia, and is not licensed in other states. Thank you.
Attorney Jon A. Gottlieb, P.C.
3 reviews

You can if you’re comfortable with the parties because you do have the right to “reverse” the waiver, but you must be careful and pay attention to the timing. Following the signing of the waiver, there is a 60-day period in which to file the lien or a Georgia statutory form affidavit of non-payment. If you fail to meet this 60-day requirement, the waiver will be permanent.

Your answer or comment:
Are you a Registered Expert?
You are not logged in and will be posting
anonymously. Log in Now
Get answers from construction attorneys and payment experts
120 Character Limit