Will I lose rights for extra payment in case I sign an interim lien waiver & release with a specific through date for a lower amount of money than the invoices from subcontractors?...Read More
What will be the legal implication if a GC does not make sure his subcontractors comply with the local regulations of getting business licenses from the county. Is this a serious violation by the GC? Could a mechanic lien be dropped for this fault?...Read More
Hello - The GC sent over a lien waiver that they want signed with their monthly billing.
This is for a progress payment as the project is still ongoing. However, I am concerned about the wording at the top of the page.
Typically progress lien waivers are through that particular months billing period NOT the full and final contract date.
Here is a copy and paste of the wording less the GC's name and project address....................
"State of: GEORGIA PROGRESS SUBCONTRACTOR RELEASE AND LIEN WAIVER
The undersigned represents and warrants that it has been paid and has received (or that it will be paid and will
receive) $ ______________ . ____ as full and final settlement under the Subcontract Agreement dated __01/18/23____"
1. The undersigned and the Contractor have fully settled all terms and conditions of the Subcontract Agreement (including any
amendments or modifications thereto), as well as any other written or oral commitments, agreements, and/or understandings in
connection with the Project.
2. The undersigned has been paid in full (or it will be paid in full via proceeds from this pay application) for the labor, services,
and materials in connection with the Subcontract Agreement, including all work performed or any materials provided by its
subcontractors, vendors, suppliers, materialmen, laborers, or other persons or entities.
3. The undersigned has paid in full (or it will pay in full via proceeds from this pay application) all its subcontractors, vendors,
suppliers, materialmen, laborers, and other person or entity providing services, labor, or materials to the Project; there are no
outstanding claims, demands, or rights to liens against the undersigned, the Project, the Contractor or the Owner in connection with
the Subcontract Agreement on the part of any person or entity; and no claims, demands, or liens have been filed against the
undersigned, the Project, the Contractor or the Owner relating to the Subcontract Agreement.
4. The undersigned releases and discharges Contractor and Owner from all claims, demands, or causes of action (including all lien
claims and rights) that the undersigned has, or might have, under any present or future law, against either of them in connection
with the Subcontract Agreement. The undersigned hereby specifically waives and releases any lien or claim or right to lien in
connection with the Subcontract Agreement against Contractor, Owner, Owner’s property, and the Project, and also specifically
waives, to the extent allowed by law, all liens, claims, or rights of lien in connection with the Subcontract Agreement by the
undersigned’s subcontractors, materialmen, laborers, and all other persons or entities furnishing services, labor, or materials in
connection with the Subcontract Agreement.
5. The undersigned shall indemnify, defend, and hold harmless Contractor and Owner from any action, proceeding, arbitration,
claim, demand, lien, or right to lien relating to the Subcontract Agreement, and shall pay any costs, expenses, and/or attorneys’
fees incurred by Contractor and/or Owner in connection therewith.
The undersigned makes the foregoing representations and warranties with full knowledge that Contractor and Owner shall be
entitled to rely upon the truth and accuracy thereof.
The undersigned certifies and warrants that the undersigned has the power and authority to execute this release and lien waiver on
behalf of the entity named herein and that such entity is bound hereby.
I, a Notary Public for the above State, certify that the ‘undersigned’ has personally appeared before me and has stated that he/she
holds the title as he/she has written and has the power and authority to execute this document.
NOTICE: THIS DOCUMENT WAIVES RIGHTS UNCONDITIONALLY FOR THE AMOUNT PAID AND LISTED ON
THIS LIEN WAIVER. IT STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS FOR THE
AMOUNT ON THIS LIEN WAIVER. THIS DOCUMENT IS IN FULL FORCE ONCE YOU SIGN IT.
...Read More
My Contractor has abandoned my new residential home construction project. As a residential home Construction Customer, with an extended Construction Loan, my Bank is in New Mexico, and my new home is in Georgia. The Bank states an Attorney can help me comply with Georgia's process of replacing the ex-Contractor on this project. What are all the steps required to replace him? Is an Attorney required to replace him?...Read More
I am a homeowner. I hired a general contractor to complete renovations on my property and want to make sure that I am protected against any subcontractors etc. placing a lien on my property in case they are not paid by the general contractor that I am hiring. I will be able to prove payment to my general contractor through my receipts but have heard that I could still be liable if they don't pay the subcontractors. Can you clarify this for me and let me know what I can do to protect myself? Also, please let me know if there is a time limit to any liens being placed on my property after the work is completed. I live in Georgia. ...Read More
My family received a mechanics lien from a construction business we have never worked with. When we reached out to the business to get details on the work they believed they had done, we received no response. I have completed a notice of contest for the Georgia clerk's office but I want to make sure I submit to the necessary parties. Should I submit it to the clerk's office only or should I send a copy to the business' address on the lien? Also, what steps should I take after the 60-90 days if no response has been received? Thank you. ...Read More
Property Restoration company is trying to put a lien on house (which I'm putting on the market to sell) but has not completed job as of Aug. 7, 2021. He just sent painters Monday, Aug. 2, 2021, who repainted bathroom, painted kitchen walls that were messed up from previous painter. On July 20, 2021, owner said he still needs to contact floor manufacturer about floor issues. Floor workers showed up unscheduled Thursday, Aug. 5, 2021, while I was at a doctor appointment. I asked if workers could return after 2:30 PM after I returned home. Only response was "checking". I haven't been given the opportunity to sign a completion and satisfaction agreement.
How do I get the lien withdrawn in writing? Can I make the final payment with proof the lien has been withdrawn? I'm concerned he's trying to delay the sale of my home.
...Read More
I work for a GC - Sub contractor who does work in many states. It seems everyone in the office fills waivers out differently. Today I am working on a Partial Waiver of lien to date and at the top left of the form it has: State of ________SS County of _______SS In the body of the form it has: "The undersigned, for and in consideration of ($ ) ______Dollars and other good and valuable considerations, the receipt whereof is hereby acknowledged, do(es) hereby waive and release any and all lien or claim of, or right to, lien, under the statutes of the State of _____________, relating to mechanic’s liens, with respect to and on said above-described premises, and the improvements thereon, and on the material, fixtures, apparatus or machinery furnished, and on the moneys, funds or other considerations due or to become due from the owner, on account of all labor, services, material, fixtures, apparatus or machinery, furnished to this date by the undersigned for the above- described premises, INCLUDING EXTRAS.* " In this paragraph, do we put our state or the state where the work was completed? ...Read More
I hired a GC to do a home renovation in GA. The GC hired an electrician, who was later fired for not communicating/showing up when scheduled. The electrician started contacting me (the homeowner) directly with threatening messages that included "I am going to love filing a lien on your house" and "let me know when I can get check or else". The GC paid him his requested amount, and the electrician wrote in an email he was "Paid in full" so that the GC could get the permit switched to new electrician. Now the electrician refuses to provide a lien release, and is requesting additional funds over and above the amount they initially requested. Please note, all payments requested since being fired are mostly false, but the GC paid to keep the property free and clear. How do I show the county that this lien is frivolous, or do I need to go the legal route? If so, can i recoup legal fees from the electrician?...Read More
We are working for a General Contractor who is asking for an unconditional lien waiver after payment of invoice where an interim (conditional) lien waiver was previously submitted prior to paying the next invoice. Does Georgia have a form for an unconditional lien waiver that is separate from a Final Lien Waiver and can the GC require that we fill out and submit this form?...Read More
We have a construction project in Georgia where we are submitting monthly pay applications. We have not been paid on application #2 and it is nearing 60 days from the time the application was submitted, however an interim lien release has not been requested for that specific pay application. Since the interim lien release was not requested or completed for this specific pay application how long would I have to file a lien or notice of non payment for this pay application if interim lien releases have been filed on all other pay applications for the project?...Read More
(Using false names for privacy). I hired ABC company to do work on a rental property. John Doe wrote the contract, signed the contract, received payments, and did some of the work. Jim Smith has a truck with 'ABC company' written on it but was never apart of contract negotiations. Whenever I had an issue with the work, I would go to John Doe to address but he would blame it on Jim Smith and refuse to take accountability for the quality of the work. There is a line in the contract which states "final payment shall be withheld until contractor signs final lien waiver". When I presented the lien waiver to John Doe, he refused to sign bc he had not received full payment. At the same time, I asked for a w9 for tax reporting and that's when i realized that ABC company is not a real company (not registered anywhere). Also, Jim Smith claimed that he had not been paid and John Doe was not honest about the full contract amount.
Because we learned that Jim Smith had not been paid, we decided that we definitely wanted to have the lien waiver in hand prior to making final payment. Since the contract ended in Nov 2020, they have been going back and forth with each other about who should get paid what. Fast forward to today, I received a letter with a claim of lien. Looking for an attorney's advice on this. Who should I pay? Who would sign the lien waiver and should I wait for that first? how do I contest the lien? Does his poor work factor into the amount owed at all? (Small example; he was paid to install kitchen countertops---2 months later, i discovered the countertops were not secure on the cabinets. I could literally pick them up off the cabinets.) Sorry for the lengthy question!!! ...Read More
I am a resident of Cobb County in Georgia and had a crooked contractor file a lien on my property. I contested it and he did nothing further and it expired October 14, 2020. January 15th I saw a pop-up on my online mortgage account that another lien was filed. After one has been filed and they did nothing in the 90 days, can they file another one? Thank you for your help!...Read More
I have a question regarding the "joint check rule" I have a customer that owes me $109K for invoices from October-December. They are sending me a Joint check for $54k to cover October invoices. If I deposit the check do I waive my rights to file a lien if I do not receive payment for Nov. and Dec. Invoices...Read More
i have a question regarding a suppliers lien in georgia.
we were the plumbing sub on a job that we left in August. We had not received payment for June, July or August pay apps, and had subsequently not been able to pay our supplier (approx $100K) for material and fixtures on the job purchased during those months. We DID pay them for material purchased during the months that we were paid.
The GC expressed an intent to utilize the unpaid contract balance and retainage (per the contract) to pay the supplier and complete the job. The supplier filed a lien and settled with the GC for less than the balance owed, leaving a balance of $9K, for which they are now pursuing us.
Can the supplier pursue us for this balance, which they negotiated for, or were their rights extinguished when they accepted a lower payment?...Read More