Lien Waiver

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Greg1707

Senior Member
Location
Alexandria, VA
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Business owner Electrical contractor
I have a dispute with a GC. I was sent a lien waver to sign. If I delay signing do I have leverage over the GC? Does he need my waiver to get his final payment from the owner?
 
Why sign the lien waiver? If he owes you money, you definitely want a lien in place!
If you do actually file for the lien (which is likely if they owe you money), then the GC will "bond" it off.
The bond sets aside the money for when you go to arbitration, court or settle out of court.
 
Do not sign the lien waiver.
tell the GC you will be happy to sign after your paid.
he doesn’t get paid until he has these to show al subs have been paid.
 
Where "paid" means the check has cleared the bank and the money is in your account, which usually does take 3-5 days for it to cease being "tentative".

(And the only thing writing "paid in full" on a check means is that the pen still has ink.)
 
Do a conditional lien waiver. It’s dumb, but it says you promise to sign the actual lien waiver once paid.

Some lien waivers are already worded to say rights are waived upon receipt of payment, but some GC’s have sent forms that say they’ve already paid you when they haven’t.



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Greg1707 said:
I have a dispute with a GC. I was sent a lien waver to sign. If I delay signing do I have leverage over the GC? Does he need my waiver to get his final payment from the owner?
Click to expand...
I am appreciate the helpful information but no one answered my question. Does the GC need my lean waiver in order for the GC to be paid by the owner?
 
Greg1707 said:
I am appreciate the helpful information but no one answered my question. Does the GC need my lean waiver in order for the GC to be paid by the owner?
Click to expand...
Look at post #5. I don’t know how much plainer it could be.
 
If your asking, your in a little deep.
this forum is great, but not a remedy or fix all for legal problems such as mechanics leins and waivers.
I would highly suggest you do a little reading on your states mechanic lien laws. They are easy to find on the web.
here is a brief overview, but search in your state for specifics.

www.nolo.com

What Is a Mechanic's Lien?

Contractors can file "mechanic's lien" on home repair or construction projects, pressuring the owner into paying.
www.nolo.com www.nolo.com
 
I’ve used one to get paid. It worked for me. I never worked for that contractor again.
my case was easy. I knew the bank doing the construction loan. Went in and explained my situation. Told them I was filing a lien on the job.
got ALL my money two days later. Cash...
 
I've mostly run into this when there was a lender involved and they won't release funds without the lien waver. Even on partial/progress payments. Read wording on the waiver, if it is generic and you are only getting a partial or progress payment demand they reword it to state it only covers what was invoiced or otherwise covered by the payment you are accepting. If it is generic in nature it can be later interpreted that they owe you nothing else and could make it harder to collect the rest of the project. Not saying you can't collect the rest of the project, but it creates another potential hurdle in getting it done.
 
GC's can be good after you get a relationship with them and have say 10 jobs under your belt where they pay like clockwork.
I did have this relationship when I was a youngster doing carpentry work building big decks on the back of condos. How I miss digging those holes!!!
I was definitely in better shape back then...lol.

Anyways, during the late 90's, the GC ran into money problems and I got stuck for a small $3,000 job. I didn't go after it thinking maybe they would turn things around. I was also thinking that after all the hassle and lawyer fees, would it even be worth it. The point being that something is going to go wrong with a GC sooner or later. But over the long run, I certainly made some pretty good coin with them.

Ironically, that event triggered me to going back to college at age 30 and getting my engineering degree. So glad I did 20 years later!!!!
I occasionally see carpenters slinging plywood on a roof of a new house....the smell of the wood...sometimes wish I could get back up there....kind of miss it a bit.
 
kwired said:
I've mostly run into this when there was a lender involved and they won't release funds without the lien waver. Even on partial/progress payments. [...], if it is generic and you are only getting a partial or progress payment demand they reword it to state it only covers what was invoiced or otherwise covered by the payment you are accepting.
Click to expand...

And add language to your own contracts that no liens will be released before actual payment.
 
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