We are a sub to a GC on a project. The owner has decided to direct purchase from one of our suppliers to save on sales tax. This supplier was never included or part of our contract. i.e. no deductive change order was issued for this transaction as stated their monies were never part of our contract. Now the GC is requiring us to sign Lien Waivers on this supplier's behalf. Is this legit?
I cannot think of any reason for the GC to make this demand on you. If the supplier had been in a contract with you, and had given notice to the owner and GC, then the owner could demand that the GC's follow this process because doing otherwise would not be a "proper payment" under the Construction Lien Law.
No! It is not legit. Owner (or GC) should require supplier to execute releases, not you.