Lien Waiver FAQ for Construction Teams

Lien waivers are becoming an increasingly critical part of getting paid in construction—but they sure can be complicated. With rules that change by project and state, staying on top of these documents can feel like a full-time job (and for some, it is). So, we partnered with the Construction Financial Management Association (CFMA) to break down everything construction pros need to know about lien waivers. (You can access the on-demand webinar here.)

During the webinar, we received a ton of questions from viewers. We compiled them here to help you navigate this topic more effectively. Additionally, we offer several resources that provide deeper insights into lien waiver management:

• Construction Lien Waiver Requirements by State
• The Ultimate Guide to Construction Lien Waivers for Subcontractors
• End the Whack-a-Mole: Lien Waiver Best Practices for Subcontractors

Waiver Types and Timing

Should I use four types of lien waivers?

Most contractors are required to use all four types of lien waivers to protect their payment rights. However, some states have unique restrictions on waiver types, so it’s important to understand your local requirements (find yours here). The key is using each waiver correctly at the right time. (We break down waiver types and timing in this guide). We also recommend getting a tool, like Siteline, to make managing them easy for you.

Should I wait for payment to clear before signing an unconditional waiver?

Yes, absolutely. Never issue an unconditional waiver until payment has fully cleared your bank account.

What should I do if a client won't release payment without an unconditional waiver?

Remind them that unconditional waivers waive your rights, and you should be able to withhold the document until payment is received. If they persist, consider whether you want to continue working with this contractor.

What lien waiver should I use if retainage hasn’t been released?

Use a conditional final for everything except retainage. When retainage releases, send the matching unconditional final for only the retainage amount.

If a conditional waiver was sent but payment hasn’t cleared, should I include that unpaid amount in the next waiver?

No. Each waiver should match the billing period and dollar amount of that period. If last month’s payment hasn’t cleared, re-send the conditional waiver for that period—don’t roll that amount into the next waiver.

Why am I being asked for an unconditional waiver if I haven’t been paid yet?

It’s usually not malicious; it’s process and paperwork. On most projects, lien waivers are tied to billing cycles, not payment statuses. So some GCs and owners require a waiver every month even if: 

• no work has been performed
• no payment has been made yet, or
• you’re just submitting a pay app. 

Regardless, you shouldn’t sign an unconditional waiver until money has cleared (even for $0). Use a conditional waiver instead.

Amounts, Exceptions, and Form Requirements

Should I list unpaid retention as an exception on lien waivers?

Only list retention as an exception if you've already invoiced for it.

Do waivers need a dollar amount?

Yes, always a specific amount. Avoid language like “paid to date,” as it can unintentionally waive more than intended.

Rule of thumb:

• For progress waivers, include the dollar amount for that specific billing period
• For final waivers, include the total paid through final payment
• If there was no payment made, use $0 (not “paid to date”)

What amount should be on an unconditional final waiver?

The amount depends on the specific document's language. Some waivers may require the final pay application amount, while others might request the total contract amount. Always carefully review the waiver's language and ask for clarification if anything seems unclear.

Is it okay to sign a $0 unconditional lien waiver?

It depends, but usually no. A $0 unconditional waiver still waives your lien rights through that date. It functions as proof you’ve been paid—even if you haven’t.

Only sign an unconditional waiver (regardless of the amount, even $0) after you have received and confirmed payment for that billing period. If no payment was made, or payment hasn’t cleared, use a $0 conditional waiver instead.

Can a GC refuse a lien waiver without the specific payment amount listed?

Yes, a GC can refuse to accept a waiver without a specific amount. As a best practice, waivers should clearly state the amount paid to ensure accuracy. Double-check your contract for information on what must be included in your waivers.

Can a subcontractor edit a GC’s lien waiver template? 

No, a subcontractor should not modify the general contractor's lien waiver template. Editing the document can lead to several issues, including:

• Invalidation of the waiver
• Compromise of your lien rights
• Delays in payment
• Potential legal disputes

If you have concerns, discuss them directly with the general contractor. In the meantime, check out this article for more information on common lien waiver mistakes that can disrupt your cash flow.

Lower-Tier and Vendor Management

When should I collect lower-tier lien waivers?

Before the billing deadline. Lower-tier waivers are often required with your monthly billing package. If you wait until after billing to start collecting them, you risk delaying your own payment.

Some tips to help:

• Request vendor waivers before the billing cutoff.
• Pre-fill the waiver (project, pay period, amount) so all they have to do is sign.
• Track them in a simple waiver log so you know what’s missing.

Are lien waivers becoming more common for sub-tier materials suppliers?

Yes, it's increasingly common. Establishing a standardized process to automate and track lower-tier waivers is crucial for keeping payments on track.

How can I ensure subcontractors report all sub-tier contractors?

Recommend that subcontractors submit a sworn statement or affidavit with their monthly pay applications.

Can a subcontractor still file a lien if they don't submit lower-tier waivers?

A subcontractor's lien rights are generally unaffected, provided they submit their own waivers accurately. However, if the contract mandates lower-tier waivers, failure to collect them could result in payment delays for both you and your subcontractors.

Should subcontractors and suppliers use the same lien waiver form?

Generally, yes, unless the GC specifically requests a different form for lower-tier contractors and suppliers. 

State- and Project-Specific Requirements

In Texas, do I have to use the GC’s lien waiver form?

No. Texas requires all lien waivers to use the exact statutory wording in the Texas Property Code. Custom or modified forms are not enforceable in Texas if the language is altered.

So, if the GC sends their own waiver, request the statutory version instead.

Does Texas have separate forms for suppliers or lower tiers?

No, Texas uses the same four statutory forms for every level of the project—GC, subcontractor, supplier, etc.:

• Conditional Progress
• Unconditional Progress
• Conditional Final
• Unconditional Final

Do I need lien waivers for specific project types?

Lien waivers are generally not applicable to federal projects due to the Miller Act, which provides alternative payment protections. State public projects often have similar protections. Instead of liens, payment bonds are typically used.

Regardless, you should always review your contract and state laws for specific lien waiver requirements.

Why do public entities require lien waivers if liens can't be filed against them?

They likely require waivers as proof that subcontractors and suppliers have been paid, even though liens cannot be filed against public property. You can always ask them why!

Are there certain projects for which you cannot file a mechanic’s lien?

You cannot file a traditional mechanic's lien on federal government projects. Instead, the Miller Act provides payment bond protection. State and local government projects also often have similar protections.

General Best Practices

What is the deadline to submit preliminary notices?

The deadline for submitting preliminary (or pre-lien) notices varies from state to state. Refer to the specific laws for your state to ensure compliance.

What should I do if I have multiple invoices paid with one check?

Confirm with your client, but typically you can submit one unconditional lien waiver for the combined total amount paid.

Should I withhold lien waivers to get change orders approved?

Withholding lien waivers isn't an effective solution for change order negotiations, as it could cause payment delays. Instead, keep your lien waiver paperwork current and work separately with the client to resolve outstanding change orders.

Should the general contractor provide lien waivers for subcontractors or require them to provide their own?

Some general contractors (GCs) provide specific lien waiver forms in the contract, while others do not. Regardless, it's best practice for subcontractors to proactively manage their own lien waivers. We highly recommend making it a part of their pay application process (and using a tool like Siteline to automate lien waiver collection and submission).

What is the easiest way to manage lien waivers? 

The answer is to automate the process with Siteline. Contractors can use our lien waiver tool to digitize all their lien waiver forms (both primary and vendor), send waiver requests to lower-tier contractors and vendors, collect e-signatures, and submit completed waivers to their clients—all without leaving the system.

Siteline also offers centralized tracking, enabling contractors to monitor the status of vendor waivers. They can see who has received the form, who has opened it, and who has (or hasn’t) signed it. This feature helps contractors collect waivers more quickly, reducing payment delays caused by compliance holds.

Sound like something your construction company could benefit from? We’d love to hear from you. Fill out this form, and someone from our team will be in touch to discuss your specific challenges and goals.