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What is a Lien Waiver?

what_is_a_lien_waiverFor our business, a lien waiver serves to communicate to the owner or general contractor that material has been paid for, or to establish the amount due from a material supplier. Contractors will frequently request a lien waver form after making a payment, or in anticipation of making a payment.

 

Mechanics Lien vs. Municipal Mechanics Lien
The mechanics lien process is somewhat complex as the rules vary by state. Mechanics liens are for the protection of contractors and sub-contractors, including material suppliers, and they apply primarily to private projects.

Some states offer municipal mechanics liens or stop notices, these are essentially a lien on funds held by the public entity. Thus, lien waivers may also be requested on public projects.

 

4 Types of Lien Waiver

1. Partial or progress waivers
Partial or progress waivers are, as the name suggests, for a portion of the material invoices provided on larger jobs that take place over a longer time period. To avoid any confusion, a partial waiver should include as much information as possible to give the party relying on them the full picture of the amount being waived and the amount still to be outstanding in order.

2. Waiver-to-date
Waiver-to-date documents represent a release of lien rights through a certain date and are similar to a partial or progress waiver.

3. Final waiver
The final waiver is given when all bills have been paid in full for a particular project.

4. Conditional lien waiver
Conditional lien waivers are used when an owner or general contractor is requesting a waiver of the contractor wherein the material supplier has not been paid. This is a representation of the amount due and, while not a release, can at times be sufficient to encourage payment.

 

Requesting a Garland Lien Waiver
For convenience, contractors can easily request a lien waiver on our website.

 

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