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What are the differences between lien waivers submitted with with progress payments and final payments.

OhioLien Waivers

Does and unconditional lien waiver form cover all the GC's subcontractors or should a separate form be completed for each sub with the pay application? At the completion of the project, is there a final lien waiver form different from the forms submitted during previous pay applications.

2 replies

Oct 14, 2019
Traditionally, "progress" or "partial" mechanics lien waivers are submitted in exchange for progress payments during a project, rather than "final" lien waivers. We break down the differences between these documents in great detail in this article: The Ultimate Guide to Lien Waivers in Construction. Still, let's look at the basic differences between partial lien waivers and final lien waivers. Difference between partial lien waivers and final lien waivers Partial or progress lien waivers waive lien rights for specific periods of time throughout the life of the project. They're specifically tailored to how construction payments are made - typically in waves until it's time to wrap up the job. Partial or progress lien waivers should typically be used when there are future payments expected on the job - and they act as receipts for each progress payment made. On the other end of the spectrum, final lien waivers are exchanged when there are no further payments expected on the job. A final lien waiver represents that all payments have been made, and they owners', GCs', and lenders' mind at ease that the party who submitted that waiver has been fully paid on the job (and, thus, they won't be filing a mechanics lien on the project property). Generally, final lien waiver forms will be different from progress lien waivers in that final waiver forms waive any and all lien rights in the project. Meanwhile, partial or progress waivers waive lien rights for certain portions during the life of the job. More on Ohio lien waivers + free downloadable templates You can learn more about Ohio's lien waiver rules and download free waiver templates here: Ohio Lien Waivers Guide and FAQs.
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Oct 15, 2019
Thank you Matt, for answering my question.  This was vary helpful.
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