Lien Waivers

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.

Most Recent Posts on Lien Waivers

Mississippi Lien Waiver Guide & Forms

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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,...

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The Dangers of Zero Dollar Lien Waivers

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The importance of lien waivers can't be overstressed. They are a critical step in the construction payment process. However, there is an unusual practice that has been around for some...

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