Lien waivers are routine on commercial construction, but mishandling them can delay payment or weaken your legal position. They exchange the right to file a mechanic's lien for payment.
Types of Lien Waivers
- Conditional — effective only when payment is received
- Unconditional — waives lien rights upon signing, used after payment clears
How to Manage Them
- Match the waiver to the payment — amount, project, and period
- Use conditional waivers when payment is not yet in hand
- Track status — sent, signed, returned, and paid
- Keep signed copies with the billing records
- Avoid signing unconditional waivers before payment clears
Why It Matters
Disorganized lien waiver handling causes billing rejections, delayed payment, and lost rights. A simple tracking process keeps billing moving and preserves your leverage until you are paid.
This content is provided for general educational purposes and is not a substitute for legal, tax, insurance, or individualized financial advice.
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