Why should you use lien waivers?
Lien waivers could possibly be the most absent document in a construction project.
Lien waivers could possibly be the most absent document in a construction project. Nonetheless, they play a very important role for both, the contractor and the project owner and could even be the one document that makes the difference between having the right to file a lien or not.
A lien waiver is a document that waives and forfeits the right to file a lien on a specific payment or claim. Project owners, lenders and developers, can request the signature of a lien waiver in exchange of full or partial payment and prevent future lien claims
Texas has strict and specific rules and requirements for construction lien waivers. Texas is not only one of the 12 states that provide statutory lien waiver forms, but it is also just one of three states that require lien waivers to be notarized. If you try to modify or edit these forms or try to add or make any changes then the lien waiver will be invalid or unenforceable. Texas lien waivers can be notarized by any notary out of state which makes it easier for parties performing work in Texas, but not based in the state.
Types of Lien waivers
There are 4 types of Lien Waiver forms explained below.
1. Conditional Waiver and Release on Progress Payment – to be used when a contractor/subcontractor is required to execute a waiver and release before receiving a progress payment, or the progress payment is made by check.
2. Unconditional Waiver and Release of Progress Payment – to be used when a contractor/subcontractor is required to execute a waiver and release to prove the receipt of a progress payment.
3. Conditional Waiver and Release on Final Payment – to be used when a contractor/subcontractor is required to execute a waiver and release before receiving a final payment, or the final payment is made by check.
4. Unconditional Waiver and Release on Final Payment – to be used when a contractor/subcontractor is required to execute a waiver and release to prove the receipt of a final payment.
Construction developers and homeowners can benefit from learning about the 4 lien waiver forms. When a contractor signs an unconditional lien waiver, the rights to file a mechanics lien for the work performed on the project until the specified date get waived.
However, there are some notable exceptions to their waivers, for example written contract in relation to accord and satisfaction disputes, settlement of a pending court or arbitration proceeding, or agreements made after a lien affidavit claim has been filed. Many times, due to false practices it might lead to project disputes. When everything is performed correctly, the concern of liens surfacing weeks or even months after the last payment is made should be over.
About the Creator
Georgie Barney
Georgie is an expert in writing about legal forms and documents that may help you when you are in the search of the right legal document.
Keep reading
More stories from Georgie Barney and writers in Journal and other communities.
Client refused to pay? It’s time to file a Mechanic’s lien
Project owners can be so confusing in the construction industry. One minute they're ready to start a project that needs to be done yesterday, and the next, they're nit-picking the cost. While some pay their bills on time, there are also those dreaded others that sit on them and balk at the cost they knew was coming. So frustrating! When this happens, it’s definitely not one of those "the client is always right" situations. Not paying for work that has been completed is a major no-no. When it happens, you should know your rights. Fortunately, state Construction Laws are on your side in cases of non-payment. These laws were created to protect the contractors in the construction industry. Let's look at the most reliable, sure-fire way to get your well-deserved and hard-earned money if you find yourself in a non-payment situation.
By Georgie Barney3 years ago in Lifehack
What are the key factors driving the demand for co-living spaces in Chinese cities?
Coliving has become a major trend among the youth, especially among freelancers and entrepreneurs in Chinese cities. This modern age concept allows people to network, exchange ideas, and save resources to implement towards their future, and not just to manage expenses in a society of increasing living costs.
By Sewmini James 4 days ago in Journal
First Starlight of Summer
Your whole being is constituted by yearning. You miss the stars but have never seen a fully-realized night sky sparkle to life before your eyes. You write things, funny but short but profound, emulating the archaic cosmos that turns by its own unknowable calculus emulating love in all its celestial glory turning in that same cryptic way, but fully know neither and hardly know both, and it feels disingenuous, so you write about writers. It feels vaguely masturbatory, but it’s funny but short but profound and it impresses the people around you enough, so you run with it forever until you can’t anymore.
By Steven Christopher McKnight3 days ago in Fiction
Comments (1)
You are right, because some businesses have inherent risks. No matter how much you plan and try to avoid, they can often be unavoidable. I also have a business that involves risks and I found the article https://guanabee.com/what-are-types-of-waivers/ very helpful, where I found everything I needed to know about forms of liability exemption and disclaimer. I hope my answer is helpful to you.