What is a lien waiver, and why does your contractor owe you one?
Every state has mechanic’s lien laws that let unpaid subcontractors and suppliers file a legal claim against your home. Yes, even if you paid your general contractor in full — if your GC didn’t pay their subs, the subs can come after you.
The two types
Conditional lien waivers say “we waive lien rights once payment clears.” Unconditional waivers say “we waive lien rights, period.” You want conditional at each progress payment and unconditional only at final payment after funds clear.
How to protect yourself
Require lien waivers from the GC AND every sub/supplier who worked at your project, with each progress payment. Keep them all.
What to write into the contract
“Contractor shall provide conditional lien waivers from itself and all subcontractors and suppliers with each progress payment, and unconditional lien waivers with final payment.”
ClearBid checks your contract for lien-waiver language and tells you exactly what to add.
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