Lien Waivers: How Are They Supposed to Work?

The wrong waiver can cost you. Karalynn and Jess walk through conditional and unconditional lien waivers, explain how progress payments and retainage affect the forms you sign, and clarify why a subcontractor's waiver does not waive a supplier's rights, helping contractors protect payment without creating unnecessary disputes. Learn more about The Cromeens Law Firm here ! Read more about punch lists here , and listen to our deep dive about them here . Grab Karalynn's new book Trust Your Gut here . Follow Karalynn Cromeens on Facebook here . Follow Karalynn Cromeens on Instagram here . Follow Karalynn Cromeens on LinkedIn here . Watch the show on YouTube here . Key Takeaways Lien waivers help owners verify that project participants have been paid, so collecting accurate waivers is part of managing payment risk rather than simply gathering paperwork. Match the waiver to the payment stage by using a conditional progress waiver when requesting payment, an unconditional progress waiver after receiving it, and the appropriate final-payment forms when closing out the job. Keep unpaid retainage protected when preparing final-payment paperwork, and understand that signing an unconditional waiver before receiving payment can seriously undermine your ability to pursue the money owed. A lien waiver addresses lien rights during the payment process, while a lien release addresses a lien that has already been filed and requires separate recording formalities. A waiver applies to the party signing it, so owners and GCs need to identify downstream suppliers and subcontractors and obtain their waivers rather than assuming one subcontractor's signature covers everyone.