A lien waiver is a construction document that a contractor or supplier signs in exchange for payment. The document waives the contractor’s right to file a mechanics lien against the property for the amount paid.
Waivers are typically exchanged after every payment. When used in progress billing, a lien waiver gives up lien rights for the specific amount received. If the contractor doesn’t receive the rest of their promised payments, they still have a right to file a lien for the amount left unpaid.
Lien waivers protect everyone on a project. They protect the general contractor from the threat of a mechanics lien, and protect the subcontractor from non-payment. When parties exchange them on every project, both parties get what they earn, making the payment process more fair and transparent.
If you’ve worked in the construction industry for any period of time, you’ve likely signed a lien waiver. However, just because its standard practice, doesn’t mean that all lien waivers are standard....
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Missouri lien waivers are an often overlooked, yet important aspect of the mechanics lien process. The statutes do provide a statutory lien waiver, but only for a certain type of...
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Construction projects usually involve a tornado of different documents, some of which are more important than others. However, there's one document, in particular, that's essential to ensuring a successful project,...