Lien Waiver?

works4me

Quick question. Normally I don't do commercial/govt. work but I did a handicapped ramp for a government home about 30 days ago, turned in the invoice. I figured they were doing the usual wait 30 to pay. They called and said they cannot pay on invoice until they have a final lien waiver. I asked if I could bring one in and trade off for check and they said no. They need the waiver first, then they will send the check. I know the invoice will get paid. But is it normal procedure to provide final lien waiver before payment? thanks

Big Bob

You want to provide a conditional wavier of lien. Lien is contingent upon satisfactory payment of ****** $. The proper wording will vary a little from state to state.

finehomes

They are a little backwards if you ask me. As a general contractor I have lien waivers on all of my jobs....but I prepare them and give them to my subs with their checks. They sign them in my presence and I exchange them for their check. Why someone thinks you should have to prepare the lien waiver for them is beyond me. That should be their job.


Sam

Double-A

We use a voucher check and the lien wavier is preprinted on our portion of the check stub. If we don't get it signed, we don't turn over the check.

Bigger companies sometimes have different in-house ways of processing payments to subs, and might require a day or two to have the project manager for that job look over the waivers and bills to be sure its O.K. to pay.

If they are big enough to work this way, then they are big enough to have you sign a contract with them. Have you looked it over, especially the payment terms part?

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"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

Michaeljp86

There is 2 sorts of waviers, one is for X amount. Lets say they owe you 10,000 and they pay you 6000 then you give them a waver that says you cant put a lean on the property for the 6000 that you were paid but you can for the 4000 that they still owe. The other is a wavier that says you wont place a lien because you were paid in full.

And the wavier of lean should be the last thing done, after all thats what its for.

Chris Johnson

The GC usually sends these to me once I invoice, I sign the 'conditional' waiver and send back, then get my check. When all work is 100% I still sign and send the 'conditional' waiver, again get my check and when the final one is in my hands I then forward a 'unconditional' waiver. Pretty standard practice here

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Chris

works4me

Thanks for the info everyone,
I found a conditional waiver (I had only used the final lien waiver before). Double-A I have worked for other companies that have similiar check systems (very professional and eficient).

tnt specialty

FWIW...........

The lien waiver printed on the back of checks for payment of work performed is extremely questionalbe/disputable.

It appears few in the industry realize that if there exists a written contract for the work/services in which the check is written as payment, the "lien waiver" on the back of the check is un-enforcable.

Been there - done that; On both sides!
By adding the "lien waiver" to the check, making it a condition upon receipt of payment, the entity issuing the check is attempting to unilaterally change the contract agreement. That's a big negatory there....If "push-comes-to-shove", the added "lien waiver" is worthless.

works4me

thanks tnt, good info (looking at it from what you said i can see how it is too simple (good) to work well now, not to mention how you said it does change the condition of the contract. I meet with them today and of course come to find the lady handling it has never done a lien waiver before. Suprising considering how authorative her NO was to me on the phone to get paid before I sign one. Anyway I got paid TODAY.