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

Frequently Asked Questions About Lien Waivers

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 I list unpaid retention as an exception on lien waivers?

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

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).

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.

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.

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!

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.

Does an unconditional progress waiver for $0 mean anything?

Yes, even a $0 unconditional waiver signed without exceptions confirms that you have been paid for all work completed through that specific period, even if there was no invoice for that month.

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.

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. 

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.

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.

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.

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.