A lien waiver (or lien release) is a signed statement that the party has been, or will be, paid for work through a certain date or amount and waives its lien rights to that extent. There are four common types, from two choices: conditional or unconditional (does the waiver take effect only once payment clears?) and progress or final (does it cover a payment period or the whole job?). Several states require specific statutory forms; elsewhere the wording is negotiated. Lien law varies by state, so check local rules.
Why it matters
Owners and lenders release money only when they can show everyone below the GC has been paid. A missing waiver from one sub or supplier can hold an entire pay application. For the GC, collecting waivers is how you avoid paying twice if an unpaid supplier files a lien.
Worked example
On Riverside Medical Center Pay App #9 (sample data), the lender wants conditional progress waivers from every sub billing this period, plus unconditional waivers for last period’s payments. Apex Steel and CoreDry haven’t sent theirs. Until they do, the lender can hold the draw, including the GC’s own money.
Common mistakes
- Accepting an unconditional waiver template where a conditional one belongs (or vice versa).
- Collecting waivers from subs but not their sub-tier suppliers.
- Waivers whose amount or through-date doesn’t match the payment.
How os.construction handles it
We’re building waiver tracking into the pay app itself, so each payment knows which waivers are required, received or missing before the draw goes out.