Home>Levelset Community>Legal Help>Should i fill interim waiver and release upon payment before receiving payment?

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

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?

2 replies

Jun 29, 2020

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.

4 people found this helpful

Helpful

Jul 1, 2020

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.

2 people found this helpful

Helpful