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Lien waivers are critical in the construction industry, but the rules and regulations vary significantly from state to state. Keeping them all straight—and thus, payments on track—can be a real headache for commercial subcontractors working across different regions. Let’s break down everything you need to know.
Why Lien Waivers Matter
Lien waivers and mechanic’s liens go hand-in-hand. Think of a mechanic’s lien as your guarantee to get paid for the work on a project. It’s a legal claim you can put on a property if you don’t receive payment. A lien waiver, on the other hand, waives your right to file that lien.
Both general contractors (GCs) and subcontractors care about lien waivers. For GCs, they offer protection from legal action. For subcontractors and suppliers, they ensure payment. But messing up a lien waiver can have serious consequences. Using the wrong form, ommitting information, or signing before you’re paid can jeopardize your earnings. That’s why it’s essential to always research the specific lien waiver requirements for the state in which your project is located. (For a complete breakdown, check out our lien waiver guide.)
The State-by-State Maze
No two states treat lien waivers the same—that would be too convenient. These are the three main areas where you’ll encounter the most variance:
- Regulated vs. Unregulated Forms: 12 states have strict regulations on lien waiver forms, meaning you must use specific, state-provided forms. The remaining states have no standardized forms, which sounds nice but, in reality, can lead to confusion and potential disputes.
- Conditional vs. Unconditional Waivers: These waivers have different triggers for when they become effective. Conditional waivers are only valid once payment is received, while unconditional waivers are valid upon signing, regardless of payment. States have varying rules on allowed types and when you can use them. For example, Indiana generally prohibits unconditional waivers, and Texas restricts signing them before payment.
- Notarization Requirements: Most states don’t require lien waivers to be notarized, but Mississippi and Wyoming do. Skipping notarization in these states will invalidate your lien waiver (and hold up your payment).
State-by-State Lien Waiver Requirements
To give you an even better grasp of this complex landscape, we broke down lien waiver requirements by state in this table, linking each to their respective state requirement guide and FAQ.
Simplifying Lien Waivers With Siteline
Wherever your construction projects take you, there’s a lot to keep in mind when handling lien waivers. Siteline can help you navigate these state-specific complexities with our intuitive lien waiver management features. Here’s how:
- Digitize all your lien waiver forms to enhance accuracy and efficiency.
- Send automated lien waiver reminders to lower-tier subcontractors and vendors, and gather their e-signatures with ease.
- Package and submit the correct lien waivers to clients in one click, eliminating tedious back-and-forths.
- Monitor the status of all lien waivers in real time to eliminate payment delays caused by missing waivers.
Subcontractors who use Siteline collect lien waivers 6x faster, on average. This efficiency translates directly to faster payments, as demonstrated by Beaty Masonry, who eliminated all compliance-related holds and shortened their payment cycle by eight days after implementing Siteline.
Interested in seeing how Siteline can simplify lien waivers for you? Book a quick demo here.
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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