how to apply a lien waiver in the construction and development process
lien waivers may see frequent use in the construction industry through many phases of a project a lien waiver could be exchanged as each service is completed and payment is received by each party some parties will not release payment until a lien waiver is signed and delivered to them it might not always be prudent to sign a lien waiver in advance of receiving payment there is the possibility that a check might bounce or that the actual delivery of payment is otherwise delayed the lien waiver document serves as a form of receipt and eliminates the possibility of a mechanic s lien from being filed the document is meant to guarantee that all parties are being properly provided for in their business relationship they give paying parties the confidence of knowing that they won t be faced with making multiple payments for a single service they can also speed up the payment process allowing parties being paid to receive their payments sooner often paying parties don t want to cut a check until a lien waiver has been signed the sooner a lien waiver enters the business relationship the faster payment can be made once the work is complete the party receiving the payment may write its own lien waiver in order to be completely confident of signing away only lien rights if subcontractors are involved in a project the complexity of receiving lien waivers can increase the primary contractor might take action by issuing a lien waiver for the latest payment and lien waivers from subcontractors for earlier work on the project they have already received payment for lien waivers should outline the specific materials work and project they are issued for if they do not it is possible that the recipient of the lien waiver might claim the payment was for any project they wish rather than the one in question and that the new payment is still required 