Surf?n the waiver

[wirenut1972]

So I?m working for a new GC.

Doing state work. Was given a good recommendation from a superintendent, so it?s all word of mouth???kinda because I don?t really ?know? the contractor or superintendent THAT well.

Finish the job, customer is happy, no screw ups, everything on time, no extra?s.

Now I fax in a bill and call to pick up a check (about 18,000) I?m told that I need to give the GC a final waiver of lien, the GC will then take the final waiver of lien to the architect, the architect will take the final waiver of lien (from all the sub?s) to the customer (board of trustees). Then the GC will get a check and then I get a check!?!? REALLY? Is that so?

I told the GC to give me a check for the 18 grand and I?ll hold it until he gets paid. GC didn?t want to do that.

Why would I fill out a final waiver of lien if I don't have a check?

So then I told the CG to fill out what ever kind of waiver he wanted to put what ever dollar amount he wanted to, sign my name for me, and give to who ever he wanted to. GC didn?t like that either.

I have been known to sign partial and final waiver?s BEFORE I got paid. But the GC?s I do that with have larger jobs and I?ve been working for them for 8 or 9 years now. My supply house will also give me a final waver, but only on state/federal job?s and I?ve been at the same supply house for sometime now and the outside sales person is a close friend of the family. So everybody get's paid.

HERE?S my question how does everybody else handle the waiver of lien? Do you do a check for waiver exchange? Will you hold a check for the GC? Do you do the waiver exchange at the job site, drive to the GC?s office? To who do you decide to give credit? How long will you wait for your money? How long if it?s $5000, how long if it?s 50,000, how long if it?s 100,000, how long if it?s 150,000. What is the first thing you do if you don?t get your money on time? How many times do you call/stop by the office and ask for money. When do you get an attorney? When do you file a lien?

Please, correct me if I'm wrong. Sub-contractor does a small part of the job(electric, HVAC, drywall). Then isn't it the GC's "job" to have the cash to pay out? I can wait for money, but why should I. Is it the sub's job to "help" the GC finance the total project? If it's goverment work then I understand a little longer wait, but why should I do the GC's job, who does mine?

 

[benaround]

these things should be addressed before you take the job, not after the job is finished.

Did you sign a contract with the GC ? If you did this info is probally spelled out in it. I don't

think you should be angry at the GC.

 

[480sparky]

I contract with the GC. Not the architect. Not the owner. Not the Board of Trustees. Not little Jimmy who mows the lawn.

When I sign a final waiver, I see a check with the company name made out for the final amount due in the GCs hand.

 

[bradleyelectric]

Include the language "Final Waiver of Lien contingent on the check clearing". Just tell the GC you'd be willing to submit something with that language and ask him if he has something of that sort. He probably has something he can have an office manager put together for you to review. Freaked me out the first time too.

 

[Cavie]

Trade the weavier for the check and nothing else. the weavier states that you have been paid. If it goes south and goes to court, you gave up your rights when your signed the weavier.

 

[bradleyelectric]

Trade the weavier for the check and nothing else. the weavier states that you have been paid. If it goes south and goes to court, you gave up your rights when your signed the weavier.

not if it says you release lien upon final payment.

 

[Don Gorham]

Tell the GC you will sign a "Conditional Final Waiver" it is common to contract law and covers you and provides him with a lien release so he can get paid. The condition is monies owed you are deposited and the lien rights are forfeited at that moment.

 

[wirenut1972]

I'm getting a "conditional" waiver tomorrow. Thanks

Check this out:
Construction Law - June 2004


Unconditional Lien Waivers in Advance of Payment: A Dangerous Practice in Wisconsin
by John S. Mrowiec

Owners want to receive mechanics lien waivers in exchange for construction project progress and final payments. Often, contractors and subcontractors must submit the waivers along with their respective pay applications in advance of the payment. Sometimes the payment application - lien waiver - payment process is conducted by use of a title company escrow. Other times, no escrow is used.

If the owner or contractor does not pay, is a subcontractor's mechanics lien waiver tendered in advance of the requested payment still a valid waiver? The subcontractor might have waived its mechanics lien rights even without payment. The particular result depends on the relevant state law and factual circumstances

check that out:
http://midwest.construction.com/news/law/archive/0406.asp


Owner's Defense

The owner defended against the subcontractor's mechanics lien foreclosure, arguing the subcontractor's final lien waiver waived all mechanics lien rights. After a bench trial, the court ruled that the subcontractor could not maintain a lien claim because of the lien waiver. The court also concluded that there was no "unjust enrichment' of the owner because the owner had paid the full contract price to the prime contractor.

SCARY, how many times did I do just that?

 

[cadpoint]

So I?m working for a new GC.

Doing state work.

Now I fax in a bill and call to pick up a check (about 18,000) I?m told that I need to give the GC a final waiver of lien, the GC will then take the final waiver of lien to the architect, the architect will take the final waiver of lien (from all the sub?s) to the customer (board of trustees). Then the GC will get a check and then I get a check!?!? REALLY? Is that so?

I told the GC to give me a check for the 18 grand and I?ll hold it until he gets paid. GC didn?t want to do that.

Why would I fill out a final waiver of lien if I don't have a check?

So then I told the CG to fill out what ever kind of waiver he wanted to put what ever dollar amount he wanted to, sign my name for me, and give to who ever he wanted to. GC didn?t like that either.

A 10% hold is not unusall on a State contract, I won't state anything like you said, "what ever dollar amount he wanted to", and your dealing with the State, as I read it. All state contracts or even AIA are available. At least get a copy of his contract. Ask the contractor what AIA contract or state contract your dealing with. You could even play dumb and call the State Treasurure and ask them about the doucuments their working from.

I have been known to sign partial and final waiver?s BEFORE I got paid. But the GC?s I do that with have larger jobs and I?ve been working for them for 8 or 9 years now. My supply house will also give me a final waver, but only on state/federal job?s and I?ve been at the same supply house for sometime now and the outside sales person is a close friend of the family. So everybody get's paid.

...

Please, correct me if I'm wrong. Sub-contractor does a small part of the job(electric, HVAC, drywall). Then isn't it the GC's "job" to have the cash to pay out?

They might or might not have had to bond or qualify for the job! This might be your one saving grace.

I can wait for money, but why should I. Is it the sub's job to "help" the GC finance the total project? If it's goverment work then I understand a little longer wait, but why should I do the GC's job, who does mine?

Seems you walked into alot of unknowns, an now some unknown variables.

Thanks for sharing, I hope it all goes Smoothly.