Lien Waiver

Double-A

DMK's story got me to thinking about how we handle our lien waivers. We use checks that are printed from our office printer. These are the "check at the top, with voucher and receipt" style. http://intuitmarket.intuit.com/fsg/p...ECK-02&brand=3

We print a lien waiver on each check on the bottom portion. When we take a check out to pay subs, he signs the waiver and we give him his check. Fast and simple.

How are you handling your lien waivers?

Grumpy

Link doesn't work. That's an interesting method. I suppose if I needed lien waivers from all my subs to be paid, as many builders do, I would use an equally as simple method.

I have a lien waiver document in MS Word format which I typed from scratch. It takes about 5 minutes to plug in the data. I only do lien waivers if I am acting as a sub and need one to get paid. I don't ask my subs to provide me with lien waivers since I don't have that typical sub gc relationship.

Mike Finley

Love it!

Double-A

Grumpy, don't forget your suppliers should provide lien waviers as well. It only takes being bitten one time to make this an issue. Fight the battle today, or fight it tomorrow. If we all live long enough, we're gonna fight it someday.

Teetorbilt

The site wouldn't work for me either. I'll stick with Business As Usual. (BAU), new web acronym?

I live in So. FL, our state flag is a subpoena.

__________________
You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

ricpacer69

Link still doesn't work.

Great idea!

I think the link isn't working because you are linking to your account with them.

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Do you know the muffin man?

www.rhcontracting.net

Grumpy

I only get lien waivers when requested. There's just no need in my setup. I am not a builder. If I had to collect lien waivers from every check I send out, it would take a full time person to manage. Like I said there is just no need.

dmkhnr

I was GC on a commercial project that required all subs to sign a lien waver for their final draw. The title company released all checks, and took care of the lien paperwork, as it was a pre-sold building.

In my scenario, the employees could have liened the home, but here in NV I can forclose on their lien being I'm in 1st position. They would have to get an injuction to stop the forclosure through a court hearing, first proving that it was legit. This would involve them hiring an attorney. If they can stop the forclosure (You'd have to have a legit lien) they would then have to enforce the lien through a court order.
This would be O.K. for a business owner, as there is an out of pocket expense to protect his lien, but a typical employee who lives paycheck to paycheck isn't going to be able to hang.
You'd probably end up offering a settlement in the begining of the process, and the employee would end up making minimum wage, and signing his rights away.

The only way that your going to end up paying your subs employees is if you hire an unlicensed contractor. (I'll never do it again)
A licensed Sub-Contractor is going to bear the burden of his employees wages, and it would have to go through several court hearings between the Sub and his employees, even having the Sub file for Bankruptcy before it became the Prime Contractors problem. Why would an established Licensed Sub shut his business down, unless he was really in a hurt.
If you have someone who is unlicensed, cashes all his checks 30 minutes after their given to him, and hasn't a pot to piss in, put them all on a payroll, or risk it like I did. Again, those employees would have had to go through a process taking several months with their boss before it came to me, and then it would have to be a court hearing, without the help of the labor commission, ultimatley causing a settlment.
It's a catch 22, as I could have settled it now, or settled it 4 months from now.
DK

britishdad

What wording do I use on a lien waiver that I print on a check?

Grumpy

Just copy one specific to your state's law. Each state requires specific wordings I would imagine since each state has specific laws. Go to a local title company and ask if they have a blank copy of a lien, then just copy it.

Kingfisher

Here is a site with free legal forms for FL contractors, I'm sure some would work for other states too but you'll have to decide that

http://www.flaconstruction.com/law/library.html

kauser667

I always attach a conditional lien waiver to the check as a GC and as a sub I never sign a uncondtional lien waiver and force the gc to accept a condtional lien waiver.

Do you guys use a condtional lien waiver? Its a lien waiver with wording stating items such as the clearing of the check...

Grumpy

I am fairly sure though not 100% certain clearning of the check is assumed as a condition of the waiver.

Regardless if it is or isn't I do know that writing bad checks is a criminal matter, where as liens are civil. My lawer has told me I am better off with a bounced check than no check at all, due to this fact.

Giftcard

Flikka

Is this waiver signed with every payment or only on the final one? The sample posted looks like it could put the worker in an undesirable position if it was signed 2 weeks into a 2 month job.

Cheers
Mary

Giftcard

We don't provide waivers for workers. Most of the work we provide is completed in 7 days or less.

Giftcard

I like contractor. Worker sounds like an employee.

Been Bit

Somewhere I remember that a waiver on the back of a check did not hold up in court. It was found that it is signed under duress because obviously the payee needed to get paid something and as such was forced to sign in order to get paid. Anybody else weigh in on this?

Also how about waivers from Union Trust Funds? try getting an unconditional from them. Let me know how that works for you.

skyhook

These are good and they are free.

http://www.cslb.ca.gov/Resources/Gui...leaseForms.asp

DBBII

Watch the date on lien waivers, especially if it is a partial waiver. The "through" date is usually more important than the dollar amount.