Lien waivers: what to collect and when
You can pay your contractor in full and still face a lien from a sub who was never paid. Lien waivers are how you stop that.
Here is the situation nobody expects: you pay your general contractor every penny, on time, and months later a plumbing supplier files a lien against your house because the contractor never paid them. In most jurisdictions that lien is valid, and it is now your problem.
Lien waivers are how you prevent it.
What a lien waiver is
A document in which a contractor, subcontractor or supplier gives up their right to file a lien for work or materials, up to a stated amount or date. You collect them as you pay, and together they build a record that everyone in the chain has been paid.
The four kinds
| Type | When to use it |
|---|---|
| Conditional partial | With a progress payment — takes effect once the payment clears |
| Unconditional partial | After a progress payment has cleared |
| Conditional final | With the final payment — effective once it clears |
| Unconditional final | After the final payment has cleared. This is the one that closes the job. |
Conditional waivers only take effect if the payment actually clears, which is why they are the right thing to exchange at the moment of payment. An unconditional waiver handed over before the money moves gives away the protection for nothing.
Who to collect from
Not just the general contractor. Anyone who could file a lien: subcontractors, sub-subcontractors, and material suppliers. Ask your contractor for a list of everyone on the job with the value of each, and collect waivers from each of them as they are paid.
Requesting waivers with every draw is routine and nobody blinks. Requesting them for the first time at final payment, from subs who finished months ago, is difficult and slow — and that is exactly when you need them most.
Several states have statutory forms
California, Texas, Florida, Arizona, Georgia, Massachusetts, Michigan, Mississippi, Missouri, Nevada, Utah and Wyoming all prescribe specific lien-waiver wording. Using a generic form where a statutory one is required can render it ineffective. Check your state's requirements, or have a construction attorney supply the right form once — you will reuse it for the whole job.
File them where you can find them
A lien waiver you cannot locate is a lien waiver you do not have. Keep them with the payment they relate to, and keep the whole set in one place with the contract, the change orders and the draw requests — because if a lien is ever filed you will need the whole chain, quickly.
Common questions
What is a lien waiver?
A document in which a contractor, subcontractor or supplier gives up their right to place a lien on the property for work or materials up to a stated amount or date.
Can a subcontractor lien my house if I paid the general contractor?
In most jurisdictions, yes — if the general contractor did not pass the money on. Collecting lien waivers from subs and suppliers as you pay is the standard protection.
When should I collect lien waivers?
With every payment, not just at the end. Conditional waivers exchanged at the moment of payment, unconditional ones once the payment has cleared.
Keep all of this in one place
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