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What has a stronger ground for contractor final payment, signed contract or waiver release wanted by homeowner?

FloridaConstruction ContractLien WaiversPayment DisputesRight to Lien

I am a contractor. A Remodeling project on a high-rise condo is complete. Homeowner won't pay as agreed on the signed contract time frame. They want an unconditional final waiver release first which was not in our contract and a cert of completion. Subs check was payed through our bank but it will not be received until after contract payment date. I agreed to send homeowner both waiver and cert as soon as I get bth of them. I also sent conditional wavier which they were to happy with. They want final. Who holds the right more?

2 replies

Oct 26, 2020

Waivers and Releases of lien rights are controlled by statutes found in Civil Code Sections 8132 through 8138. On final payments, subcontractors and direct contractors should provide a Conditional Waiver and Release on Final Payment (Civil Code 8136) with the application for final payment. After final payment is received they should submit an Unconditional Waiver and Release on Final Payment (Civil Code 8138). It sounds like in your situation the owner doesn't undestand the law, and is requesting an Unconditional Waiver and Release on Final Payment before the final payment is made. You should do your best to explain the law to the owner, and if the owner still refuses to make payment I would recommend that you retain a qualified construction attorney who could send a more strogly worded letter to the owner explaining the purposes of the lien waiver forms, and demanding payment.

Also, keep in mind that you have only 90 days from project completion in which to record a lien, and only 60 days if the owner records a Notice of Completion.

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Oct 26, 2020

Sorry, my answer was for California only. I have my filter on questions set up to California only, but for whatever reasons sometimes LevelSet pushes somethrough from other states. I do not practice law in Florida, but the answer may be similar. 

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