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What to Know About Lien Waivers in Construction

Like in every industry, a construction business wants to make sure that they get paid. This is particularly vital in service industries where it’s not just resources or a product lost by a failed payment, but hours of time and hard labor.

This is why lien waivers are so vital in the construction business. This article will let you know why this is and why you should capitalize on lien waivers during your next construction project.

Knowing Your Rights

Let's get down to business.

Different Types of Lien Waivers

When it comes to Lien Waivers there are two different categories. Conditional waivers and unconditional waivers. They are different reasons for filing either of these waivers. They are as follows:

Conditional Waivers. Conditional payments have a condition, as you might guess from the name. This means the waiver goes into effect or is fulfilled upon the fulfillment of that condition. Oftentimes it is a receipt of payment.

Unconditional Waivers. Unlike conditional waivers, an unconditional waiver is effective the moment it is signed, whether payment has been received or not.

For both of these waiver forms, there are two subcategories that they can fall into. These are final payment waivers and progress payment waivers. There are different in key ways:

Final Payment. This waiver comes into play if the entire value of the contract will be paid in a lump sum in a single payment. However, a final payment waiver also comes into play if the payment in question is the last in a series of payments.

Progress Payment. Progress payment waivers are issued when the payments will be coming at some time in the future. Also called a partial progress waiver, they are best for payments that will come in many installments throughout a project.

Why Send a Lien Waiver?

Lien waivers are a great way to build trust between parties that may be working together for an extended period. They can ensure that the service renderer and client are both on the same page when it comes time for payment.

It’s also a great receipt that shows funds paid and it helps keep the client from having to pay twice.

Know the Law

Additionally, make sure to check state laws on lien waivers. In some states, they are legally required for every construction project. In other cases, the rules are less specific.
Being familiar with your state's lien waiver laws can make all the difference in how you protect your rights.

Don’t get left behind by a client or supplier who won’t pay. Instead, protect your rights and file a lien waiver for your construction project.

Make the Most of Your Lien Rights, Choose Experts that Care!

Nationwide Notice understands the power of securing your lien rights and wants you to get paid on your terms. Noticing the proper parties of your lien contracts can be confusing and just a hassle, but no more

When you trust Nationwide Notice, our teams of experts know just how to help. We specialize in lien laws and related documents to assist construction companies in securing payments. We aim to help contractors and subcontractors alike to secure their lien rights while getting the money they deserve, and on their own terms. You can check out Nationwide Notice and their full list of services we offer here , while finding our contact page to find out how to get in touch with us to get started.

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