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Lien Waiver
What is a Lien Waiver?
A lien waiver is a legal document used in the construction industry that is often exchanged between parties involved in a construction project. This waiver essentially absolves or "waives" the claimant's (typically a project participant like a contractor, subcontractor, or supplier) right to impose a lien on the property for the amount they have been paid. It's often used upon payment to ensure that the payer is protected from double payment or any encumbrances on the property related to payment disputes. There are four general types of lien waivers: conditional and unconditional, each of which can be used for progress or final payment. Each type has its own legal implications, so it's important to understand them fully before signing.
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Other construction terms
What are Bid Prices?
Bid prices in the construction industry refer to the amount a contractor proposes to charge for a particular project or service tendered by a client or project owner. These prices are usually determined after the contractor carefully assesses the project's scope, requirements, and the associated material, equipment, labor expenses, and overheads. The bid prices are essentially the predicted cost of the project plus the profit margin of the contractor. The client or project owner usually picks the contractor with the most comprehensive and competitively priced bid, assuming all other important factors like experience and capability are deemed satisfactory. It's noteworthy that bid prices can be subject to negotiation, and post-bid changes could occur following project change orders or unexpected construction conditions.
What is a Notice of Intent to Lien (NOI)?
A notice of intent to lien (NOI)—also called a notice of non-payment or intent notice—is a formal legal document warning a property owner, general contractor, or lender that a subcontractor or supplier plans to file a mechanics lien if an unpaid balance isn't settled within a set number of days.
Acting as a final warning before taking legal action, an NOI often resolves payment disputes quickly because property owners cannot sell, transfer, or refinance a property with a mechanics lien attached. While only legally required in certain states (full list here), sending an NOI is a low-cost, highly effective A/R strategy for collecting past-due funds without going through the formal lien filing process.
Notice of Intent vs. Preliminary Notice:
- Preliminary Notice: Sent at the start of a project to preserve your baseline right to file a lien if needed later.
- Notice of Intent to Lien (NOI): Sent after a payment is significantly overdue as a final deadline demand before officially recording the mechanics lien.
How Siteline Helps:
Every state has different lien rules, timelines, and required forms, making it easy to miss crucial notice deadlines and accidentally forfeit your lien rights. Siteline tracks state-specific lien deadlines across all your projects behind the scenes. When an account becomes severely past due, Siteline helps you instantly generate state-compliant lien notices using project data and send them via certified mail—so you preserve your leverage and protect your right to get paid.
What is a Property Owner?
In the construction industry, a property owner refers to an individual, group, company, or entity that holds legal title to real estate, which comprises commercial or residential properties. This person or entity has the right to sell, lease, develop, renovate, or commission construction projects on the premises. The property owner may also participate in planning, decision-making, and overseeing construction work, either independently or in collaboration with structural engineers, architects, and contractors.
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