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Kitty-corner, caddy-corner; soda, pop; toboggan, sled; crooked, cattywampus… Variations in terms and phrases are quite common in the US, and it’s typically harmless. But, such is not the case when it comes to construction, where knowing the correct terminology and the legal weight of the term’s associated documentation can mean the difference between getting paid on time and accidentally forfeiting your rights.
Two terms that subcontractors often toss around interchangeably (and very much shouldn’t): lien waiver and lien release. While they sound similar—and both relate to your right to get paid—they serve opposite functions in the construction payment cycle.
Confusing a lien waiver with a lien release can lead to administrative nightmares or worse, leave you without leverage when you need it most. So, lien waiver vs. lien release—let’s break down what they are, how they differ, how mix-ups happen, and what subcontractors need to watch for to protect their cash flow.
What is a lien waiver?
Think of a lien waiver as a receipt of payment. It is a document signed by a contractor, subcontractor, or material supplier that states they have received payment for a specific amount and, in exchange, they waive their right to file a mechanic’s lien for that amount. Waivers are routine. You sign them every month with your pay application.
- Timing: A conditional waiver is submitted with the pay application; an unconditional waiver is submitted after you’ve received payment. Progress waivers are submitted with progress bills. Final waivers are submitted with the final invoice, and after you collect that payment plus retainage.
- Purpose: Waivers give the property owner and GC peace of mind that you won't file a lien later for work they've already paid for.
- Direction: As the subcontractor, you collect waivers from your downstream vendors (e.g., suppliers and lower tiers), and then you pass those waivers, as well as your own, up to the GC.
Need your own set of lien waivers? We've created downloadable templates for all four types—conditional, unconditional, progress, and final. Get ‘em here.
What is a lien release?
A construction lien release (also known as a lien cancellation or discharge of lien) acts as a formal declaration that a specific claim against a property has been resolved. When a contractor or supplier fails to receive payment for their services or materials, they file a mechanic’s lien. While this lien protects the worker, it creates significant hurdles for the property owner, often freezing their ability to sell or refinance the asset.
Unlike lien waivers, which are routine documentation within the monthly billing workflow, lien releases are filed after the resolution of a filed mechanic’s lien. The three most common resolutions are:
- satisfaction (debt has been paid in full),
- foreclosure, or
- lien expiration.
In any of these cases, the lien remains on the public record until the claimant files a lien release at the same government office where the original lien was recorded. Lien release forms vary by jurisdiction, but generally require:
- the property address,
- the names of both the owner and the claimant, and
- reference data linked to the original filing (such as the lien number or filing date).
Most states enforce strict deadlines—typically 10 to 30 days after payment—for releasing a lien. This keeps the property title clear and ensures that once the debt has been paid, the lien doesn’t continue to encumber a property’s marketability.
Why are lien waivers and releases confused?
Why do these terms get mixed up so often? The confusion stems from the legal titles of the documents themselves.
In many states (like California), the statutory form used for monthly billing is literally titled "Waiver and Release of Lien Upon Progress Payment." It uses both words!
However, the function of that document is still that of a waiver. It’s waiving your future right to file a claim. This differs from a formal "Release of Lien" document filed with a county clerk to remove a lien from public records.
Here’s how it all breaks down:
What should subs watch for?
As a trade contractor, signing the wrong document at the wrong time is a major risk. Here’s what to watch for:
1. Watch the wording on paperwork.
Because lien releases must be filed at the same office where you filed the mechanic’s lien, you’re not likely to use an actual lien release document in place of a waiver. That said, you may encounter lien waiver forms where the GC has used “waiver and release” terminology on the document. The crux of the matter here is that if you have not received payment for the invoices submitted thus far, do not sign any unconditional waivers or any documentation that states you are releasing your right to file a lien. (For more information on waiver laws by state, check out our by-state guide here.)
2. Watch the "through date.”
When signing a waiver of lien for a progress payment, ensure the "through date" matches the date you’re billing for. If the dates don't align, you might accidentally waive rights to money you haven't billed for yet.
3. Watch your timing.
Submit conditional waivers with your invoices or pay apps, but don't sign an unconditional waiver until payment hits your bank account. Sign too early, and you give up your lien rights with nothing to show for it.
The same principle applies to lien releases: don't file one until your mechanic's lien is fully resolved, and stay aware of your state's filing deadlines.
4. Stop the paperwork fire drills.
Managing the nuances of lien waivers and lien rights across dozens of projects and different states can be an administrative nightmare. One missed date or incorrect form can delay your payment by weeks or risk your rights.
Siteline reduces risk and helps protect your path to payment. Our lien waiver management software automatically tracks waivers, deadlines, and compliance documents for you and your vendors. It generates the correct forms (conditional, unconditional, progress, final, custom GC form or state-specific) and integrates with the GC portals you already use, keeping submissions on schedule.
Siteline also tracks your lien rights by project from the start, so you always know where you stand and have the documentation to protect your payment.
Now that y’all, yince, or you guys (pick your regionalism!) know the difference between lien release and lien waivers, you can navigate some of your construction paperwork with more confidence. (Certainly more confidence than that of a Deep Southerner attempting conversation with a Boston Southie.)
AIA®, G702®, and G703® are registered trademarks owned by The American Institute of Architects and ACD Operations, LLC. Siteline is not affiliated with The American Institute of Architects or ACD Operations, LLC. Users who wish to use Siteline’s software to assist in filling out AIA® forms must have or secure the AIA® forms. Siteline does not and will not provide users with the forms.
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