In Part 1 of our 3-part Lien Waivers, Simplified series, we explained what liens and lien waivers do on a construction project. Part 2 included tips to help you keep your primary lien waivers flowing like clockwork, month after month. Today, we’ll share a few tips to manage and track lien waivers from your lower-tier vendors and subcontractors.
Wait, there’s more on lien waivers?
Primary lien waivers are only one part of the puzzle! Making sure your own lien waiver process is watertight is a key process, but making sure your business partners like vendors and sub-subcontractors stay on top of their waivers is just as important. One of their missing waivers can hold up your progress payment, even if you’re not on the hook for providing the right documents!
Lower-tier lien waivers
Lower-tier lien waivers are trickier to keep track of because some of it is outside of your control. These are waivers submitted by your vendors, sub-tier contractors, or materials suppliers that need to be collected and submitted to your GC and project owner. Not all GCs and owners require lower-tier waivers, and those that do may not need them for all of your suppliers and sub-tiers.
Here are 3 key tips to ensure your lower-tier lien waivers are always on time and accurate:
1. Stay up to date on which lower-tier waivers your GC expects each month.
This will cut down on unnecessary work for your team chasing down waivers that aren’t needed, and ensures that your payment won’t be held just because you’re missing a waiver from one supplier.
2. Get your lower-tiers into the habit of sending waivers in with their invoices.
If you set this expectation early on, you can avoid the risk of a payment being held up because a vendor forgot to send this month’s waiver to you. Plus, you skip the extra step of requesting the lien waiver (and a series of follow-up calls and emails).
3. Combine all of your lower-tier waivers into a single package to submit each month.
By providing everything your GC and project owner needs in a single email or upload (and even with a table of contents to help them stay organized), you can avoid the headache of a missing attachment or missed email impacting your cash flow.
Waive goodbye to missing waivers!
Subcontractors using Siteline can request, track, and compile a package of lower-tier waivers to submit, all in one simple, easy-to-use system. In fact, trade contractors using Siteline are able to request hundreds of lower-tier waivers in a single month and remind lower-tiers about outstanding waivers in just a few clicks, ensuring that they have everything they need to get paid on time, every time.
With primary and lower-tier lien waivers under control, you can be confident that your project finances are more secure, and that you run a lower risk of a payment being put on hold by a GC or owner each month. In case you missed the previous posts in our Lien Waivers, Simplified series, check out our explainer on liens and lien waivers, and our tips for managing your primary lien waivers. Check back often for updates, and don’t forget to sign up for our emails to help you bill better every month!