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Using a Subcontractor Bond in Lieu of a Lien Waiver

We are a Prime Contractor. Public job. Florida. One of our Subcontractor's is in a dispute with one of his equipment suppliers (a sub-subcontractor). The Subcontractor does not hold a payment bond. We hold a payment bond as the Prime Contractor but have received a bond claim. The sub-subcontractor refuses to sign a current lien waiver. Suggestions? Can the Subcontractor provide a bond for the disputed amount in lieu of a lien waiver?

1 reply

Feb 23, 2020

I would think that you could have the subcontractor bond off the potential lien of the supplier, or you could have the subcontractor escrow the amount in dispute, or you could escrow the amount in dispute. You want to make sure you properly document this process so that it's clear when and how the escrowed funds are released. You should consult with a construction attorney because there are a lot of possible solutions here, it may just take a little creativity and a little documentation. On a related note, do you know if the sub-subcontractor's lien rights have expired? If so, then some of your concerns may be moot. Let me know if you have any further questions.

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