Waiver Of Liens

bcf

Hey guys, I'm having a problem getting a final payment for a job I did back in January. The contractor I subbed to wants me to sign a 'Release and Waiver of Liens and Indemnity Agreement" bofore they pay me. Second paragraph states:

"NOW THEREFORE, for one dollar($1.00), and other goods and valuable consideration, the reciept and sufficiency of which is hereby acknowledged, Subcontractor does hereby, upon reciept of $1,500.00, which represents the final payment due and payable by COntractor to Subcontractor, for services rendered, works performed and/or matereials furnished in connection with the construction of the aforesaid project, waives and release all liens and/or rights of lien which Subcontractor has or may have pursuant to the laws of the Commonwealth of Pennsylvania by virtue of services rendered, work performed and/or materials furnished in connection with the construction of the aforesaid project.

Furthermore, Subcontractor does hereby agree to indemnify COntractor and/or Owner by reason of any loss or damage which Contractor and/or Owner may substain as a result of any mechanic's lien arising out of services rendered, work performed and/or materials furnished by Subcontractor or by any of the subcontractors, laboreres or materialmen of Subcontractor."


Now what I and anyone else who has read this gets is that once I sign this form, I am saying I have recieved my money, and cannot place a lien. The are saying I need to sign it to release the already printed check.

BTW, the invoice was sent to them on 1/30/07, and this form was not sent to me until 3/5/07. I smell a fish, but wanteed to get some more views before I head to my lawyer at for $200.

Thanks for looking

__________________
Matt Ehrenzeller-General Manager
A Great Divide Fence Company
www.agreatdividefence.com

concretemasonry

Lien laws vary from state to state.

Since you are a contractor that will probably see more of these in the future, bite the bullet for the attorney and make sure he gives you a good explanation of your lien laws and how to use them to protect yourself.

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Dick

Engineer, designer and consultant recently active domestically and internationally on construction and design in about 35 countries.

Stone Mountain

Very common. Almost standard with commercial jobs. They just want to make sure that you don't lien the property fraudulently. I've gotten the same thing a hundred times.

__________________
Residential Deck Specialist: Vist our Website
www.fenceanddeck.ca

finehomes

I make all of my subs sign a lien waiver before I give them a check..... but I always have the check in hand to give to them. I don't think I would sign anything without the money right there upon signing.


Sam

ultimatetouch

I think I would be doing the same thing if I was subbing, thats just good business. However I would request that he meet you and give you the check upon signing and be polite for your sake. If you dont like the way the builder pays and I'm sure I wouldnt like getting pai two months later, dont work for him anymore.

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Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois

bcf

I don't mind signing it, if at the same time or after I had the check. Of course, they are willing to let me drive an hour to their office to sign and receive the check at the same time. Just seems like I should have my money before signing.

The other thing that bothers me is that they sent this form to me 34 days after the original invoice was sent, but the check was already generated without the late charges.

Well, guess I'll call and will be willing to drop the late charges if he meets me around my neck of the woods.

And I know this will be the last time I work for them. Thanks guys.

__________________
Matt Ehrenzeller-General Manager
A Great Divide Fence Company
www.agreatdividefence.com

Tscarborough

Check in right hand for the amount of the release, sign the wavier with the left. No money, no lien release, simple as that.

Mike Finley

We make all subs sign a conditional lien waiver. That eliminates the you grab the check from my hand at the same time I grab the lien waiver from your hand... at the count of 3... 1, 2, 3...

You can make a copy of it from here:

http://www.rockymountainbathrooms.co...%20Release.pdf

Same Old

A conditional waiver is only valid if the check clears.

Oddly you have an unconditional waiver titled as a conditional waiver, you might want to have your attorney give that a once over. I'm sure it will work fine in court, but it isn't worded very well.

Ed the Roofer

Add in with your own writing,

"Valid only upon receipt of final/partial payment for $ xx,***.00"

Ed

bcf

Actually spoke to the guy today. Insisted that it was only valid when my check cleared, but finally agreed to sent the check if I gave him my Man's Word. Which was fine, never had a problem with that, just like a handshake to me. I am going to talk to a lawyer just to find out the lowdown for the future.

The guy was courteous and sounded genuine every time I talked to him, and said he would like to work with me again. So if the lawyer tells me the waiver is only validated once the check clears, I have no problem calling him and humbly apoligizing for everything.

Thanks guys.

__________________
Matt Ehrenzeller-General Manager
A Great Divide Fence Company
www.agreatdividefence.com

ultimatetouch

wow mike you even have a logoed up waiver of lien, you really got it togather.

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Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois

ultimatetouch

Take it easy not everyone is out to screw you, could you imagine being in his shoes and having to chase guys down to sign a waiver.

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Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois

skyhook

No need to apoligize. He strung you out. If you do work for him again, do it on your terms.

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IBUILD

Never take a mans word, or a hand shake, good way to wind up getting screwed. The law wont protect you if you dont protect yourself first.
It's sad but true, I hear about it all the time in this buisness.

T bone

While I acknowledge that waiting for payment from Jan till now is "stringing you out", the lein release is not at all unusual (tho it is poorly worded). The operative piece of it is that the release is not effective until you get paid $1,500 so if that is what you're owed then I don't see a problem with it. In my "day job" we run about $500k a day in accounts payable to subs (day job is with a big defense services contractor) and use the lein releases like that on all of our final payments to subs.