A subcontractor lien waiver provides that a subcontractor performing labor or supplying materials for a construction project has been paid, and waives any statutory liens they may hold. Before delivering any progress payments to the contractor, an owner must make sure the subcontractors are getting paid by the contractor. If they aren’t, the subs can file liens against the property, with extremely adverse consequences. By requiring the contractor to obtain lien waivers from all subcontractors prior to each progress payment, a property owner can protect themselves from some uninvited surprises.
Documents to be prepared for you: “Follow-Through” Instructions, Subcontractor Lien Waiver.