So what is a lean waiver and how does it affect your construction project so if you're a property owner or you're a construction manager you may have heard of lean waivers obviously if you're in the construction industry you know what they are but if you are a homeowner or a property developer you want to make sure that you're getting lean waivers from all your subs and from your general contractor and the way it works is very simplistically if a general contractor works on your job and they hire subs electrical plumbing hvac framers each one of those subs in almost every state has an automatic lien on your property until their invoices paid if the general contractor doesn't pay the invoice let's say to the electrician the electrician can have a lien on your property for their work and their workmanship it doesn't matter if you pay the general contractor or not if the subcontractor didn't get paid for whatever reason they still have a claim against your property for that reason you want to make sure that all of the subcontractors are identified and you're getting lean waivers from each one of them individually and that you have a good surety bond from your general contractor to cover you if one of them doesn't get paid so the worst case scenario and you've probably seen this in the news is a homeowner hires a general contractor to build a house or to do a recon remodel or an addition and they pay in full for that remodel and then the general contractor goes out of business or has financial problems and doesn't pay the subs when all of a sudden the subcontractor files a lien on the property for work that the owner paid for...
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About Lien Waiver
A lien waiver is a legal document used in the construction industry to release a party's claim on a property or project. It serves to verify that a contractor or subcontractor has received payment for their work and waives any future rights to file a mechanic's lien against the property. Lien waivers are typically required by property owners, general contractors, or construction lenders for each payment made during a construction project. By obtaining lien waivers, these parties can ensure that there are no outstanding claims or liens on the property, providing protection against potential legal and financial disputes. Various types of lien waivers exist, including partial and final waivers. A partial waiver releases the claimant's right to file a lien for a specific payment, while a final waiver relinquishes all lien rights upon receiving full payment. These waivers may be requested at different stages of a project to ensure that all parties involved have been compensated appropriately. Having lien waivers in place not only protects property owners and project funders but also gives contractors and subcontractors a sense of security by receiving prompt payment for their services or supplies.
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