Newbie With Question On Partial Lien Release Clauses

woodpile

Hi All,
New member here with a question on "typical" partial lien release clauses in construction contracts between GC and Owner. Specifically, is it most common to require the GC to furnish partial lien releases from Subcontractors and Vendors prior to receiving the first draw (any payment), or, is it typical to require partial lien releases for the prior month's payment before receiving the next draw? I understand it is usual to provide final releases before getting paid the last draw including retainage.

The first way requires the GC to finance the work until reimbursed. Trying to avoid that. Maybe I've been lucky on other work to bring in releases for the previous month before getting the next check (again, until the last draw) but don't remember it being the norm to front the payments.

Thanks for any insight/suggestions

genecarp

i will not sign a partial lien release untill i recieve the check for that amount, you could also sign the release, with a signed note at the bottom that states (release becomes effective after check has been recieved)

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kevjob

after the check is cleared would be a better way to state it on the release.

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Kevin
Basement Finishing Highlands Ranch Colorado
Littleton Colorado, Basement Remodeling
Kitchen Remodeling Denver

19kevin56

It is customary to provide partial lien waivers for every pay application after the first draw. Then, a final waiver is provided before final payment is released.

Regards

Kevin