Everyone in the construction industry encounters lien waiver documents, but too often, these complex and consequential forms are overlooked. Whether you’re a sole proprietor or a large corporation, understanding and managing lien waiver requests is important.
Ask yourself: Does your company have a defined policy for how lien waiver requests are received and handled? Is your staff prepared to analyze the hundreds of thousands of lien waiver form variations in the marketplace? This extensive guide will explain everything you need to know about lien waivers, and walk you through best practices that could save your organization from a very expensive mistake.
What Exactly Is A Lien Waiver?
Anyone furnishing materials, labor, or services to a construction project may be entitled to file a mechanics lien or bond claim in the event that they are not paid. Those in charge or at “the top” of a project – such as the property owner, lender, construction manager, or general contractor – are highly motivated to finish the project successfully without any liens or bond claims being filed. In fact, since these claims affect the property title or bonding capacity, they may actually prohibit the job from getting completed successfully.
Keeping a project free and clear of lien and bond claims is actually quite challenging since…Read More