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The GC wants us to sign a lien waiver in lien waiver to get paid. Is this legal and fair?

we finish project for the draws general contractor had me sign a lien waver for moneys pay only. not the final payment .we have not been paid I did not file a prelien 20 day .they kept telling us not be concerned .we are left holding the ball. bills are plying up the men are asking for there pay checks these men play me and my men .what can I do

1 reply

Oct 8, 2018

I'm very sorry to hear that. First, it's important to be careful when signing any lien waiver. California is very strict on lien waivers, though, so it should be relatively easy to determine what a lien waiver is waiving, exactly. All 4 types of California lien waivers allow for certain amounts to be considered an "exception" (not waived), but it's very important to be sure the waiver is correct. Otherwise, you could accidentally waive all lien rights - even for amounts not paid. You can learn more about California lien waivers here: California Lien Waiver Forms & Guide (Conditional & Unconditional). Even when preliminary notice was not sent, sending a document like a Notice of Intent to Lien could be helpful. This document says that, if payment isn't made soon, a lien will be filed - and it can be sent regardless of whether a claimant has worked to preserve their right to lien with a preliminary notice. Considering a mechanics lien is such a drastic remedy, the threat of a lien cannot be taken lightly. You can learn more about it here: What Is a Notice of Intent to Lien and Should You Send One? If that's not effective, it might be a good idea to send a demand letter that threatens specific legal action (such as an action for breach of contract, unjust enrichment, or under California's prompt payment laws). When sent through an attorney, a demand letter can be particularly effective - nobody likes a lawsuit. Finally, if all else fails, filing a lawsuit might be an option - especially considering the large amount of money at issue. Filing a lawsuit can be risky and expensive, but if there are no other options, it could be worth it. Plus, some law firms may consider taking on the case on a contingency fee basis - meaning, nothing would be paid up front, but the attorney would receive a portion of whatever award you win.

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