How to File a Construction Lien Waiver

Filing a construction lien waiver can be a complicated process to those who have never filed this document before. If you’re someone who needs a little help getting this process sorted, then allow our industry experts to guide you through filing a construction lien waiver.

Construction lien waivers can significantly impact lien rights, which is why it’s important to make sure you understand and examine every aspect of the waiver. Although waivers can be confusing at times to manage, they are exchanged and used on nearly every construction project. The content and structure of a waiver can also be different, depending on where you live. However, there are 12 states that statutorily regulate lien waivers: 

  • Arizona
  • California
  • Florida
  • Georgia
  • Massachusetts
  • Michigan
  • Mississippi
  • Missouri
  • Nevada
  • Texas
  • Utah
  • Wyoming

While these states have regulated lien waivers that act the same across the board, non-regulated states have more freedom for including terms and provisions that can be confusing or unfairly protect the parties who must give the payments. Of course, top-of-chain parties aren’t necessarily immune from risk either, though. A lack of project visibility can mean that lien waivers don’t get obtained from all the necessary parties, which may result in double payments. It’s important for all parties, top-tier and lower-tier, to understand who’s all working on the project and how it connects. This leads to a more transparent collaboration between everyone involved.

Even though lien waivers are used for virtually every project, they still prove to be a tricky document if not managed right. However, if you lower-parties are able to file properly and if top-tier parties can easily manage and keep track of the scope of the project, then that will mean fewer risks and a quicker turnaround for the construction work.

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