Lien Waiver Form

What is a Lien Waiver Form?

A Lien Waiver Template is an essential tool in Project Management and construction that contractors, subcontractors, or suppliers use to relinquish their right to place a lien on the property for labor, services, or materials provided. This template helps in ensuring that payments are made and received without disputes, thereby promoting smoother project execution and financial management.

What is a Lien Waiver?

A lien waiver is a document that releases a contractor, subcontractor, or supplier’s right to file a lien against a property upon receipt of payment. It serves as proof that the party has been paid for their work or materials and therefore waives their right to claim a lien on the property. Lien waivers are crucial for protecting the interests of all parties involved in a project.

Types of Lien Waivers

There are four primary types of lien waivers used in construction projects:

1. Partial Conditional Lien Waiver: This is used when a partial payment is made, and the waiver becomes effective upon the actual receipt of payment.
2. Partial Unconditional Lien Waiver: This is used when a partial payment is made, and the waiver is effective immediately, regardless of whether the payment has been received.
3. Final Conditional Lien Waiver: This is used for the final payment and becomes effective upon the actual receipt of payment.
4. Final Unconditional Lien Waiver: This is used for the final payment and is effective immediately, regardless of whether the payment has been received.

Read more on Lien Waiver's in this 'ultimate guide to using construction lien waivers' here.

How to Use This Lien Waiver Form

This Lien Waiver Template is designed to streamline the process of waiving lien rights upon payment. Here’s how to effectively use the template:

1. Identify the Parties: Include the names and details of the claimant (the party waiving the lien) and the customer.
2. Specify the Job Details: Provide the job location and the owner of the property.
3. Detail the Payment Information: For conditional waivers, specify the check amount and the payer details. For unconditional waivers, confirm that the payment has been received.
4. Include Exceptions: List any exceptions, such as disputed claims or retentions.
5. Sign and Notarize: Ensure the waiver is signed by the claimant and notarized if required by state law.

Example of a Lien Waiver Entry

In our recent capital project, the subcontractor provided a Final Unconditional Lien Waiver upon receiving the final payment. The waiver included the subcontractor’s name, the job location, and the owner’s details. It stated that all labor and materials had been paid for, and no further claims would be made. This ensured that the project could proceed without the risk of future liens being placed on the property.

Template Highlights:

• Comprehensive Fields: Includes sections for claimant and customer details, job location, payment information, and exceptions.
• Easy to Use: Streamlines the process of waiving lien rights with clear instructions and fields.
• Customizable: Adaptable to meet the specific needs of any project or organization.
• Professional Layout: Ensures clarity and professionalism in documentation.

What’s Included:

• 1 x Partial Conditional Lien Waiver Template
• 1 x Partial Unconditional Lien Waiver Template
• 1 x Final Conditional Lien Waiver Template
• 1 x Final Unconditional Lien Waiver Template

How Mastt can help with Payments in Construction

👉 Head to Mastt's Contract Module.