A lien waiver is a document in which a contractor, subcontractor, or supplier gives up their right to file a construction lien, typically signed in exchange for payment.
Owners request lien waivers to confirm subcontractors and suppliers have actually been paid.
What Does a Lien Waiver Typically Include?
- The party waiving their lien rights
- The amount and project it applies to
- Whether it’s conditional or unconditional
- A signature confirming the waiver
Why Are Lien Waivers Important?
Before releasing a final payment, a homeowner might require every subcontractor who worked on the project to sign a lien waiver confirming they’ve received what they’re owed. This protects the owner from a lien being filed later despite already paying the general contractor in full.
Lien Waiver vs. Construction Lien
A construction lien is a claim filed for nonpayment; a lien waiver is the opposite, a signed release giving up that right once payment has been confirmed. Conditional waivers take effect only once payment clears, while unconditional waivers take effect immediately upon signing.