« Back to Glossary Index

A Lien Waiver is a legal document through which a contractor, subcontractor, or materials supplier relinquishes their right to file a lien against a property for the amount they have been paid.

It’s a receipt that proves payment for services or materials and ensures the property owner is protected from potential future claims.

The Importance of Lien Waivers

Lien waivers are crucial in the construction industry as they provide security for property owners by preventing suppliers or contractors from claiming they haven’t been paid after receiving their compensation.

They also help maintain a clear financial path for projects, ensuring that payments are properly documented and disputes are minimized.

Managing Lien Waivers

Effective management of lien waivers involves collecting these documents in a timely and organized manner with each payment cycle.

For contractors, it’s about ensuring that all parties down the supply chain provide waivers, securing the project’s financial integrity.

For owners, it’s about keeping these documents as proof of payment, protecting their property from liens.

« Back to Glossary Index