Construction Lien Waiver Requirements by State

What is a lien waiver?

A lien waiver is a legal document in construction that waives a contractor’s, subcontractor’s, or supplier’s right to place a construction lien on a property. The waivers function like a receipt—when a party receives payment, they sign a lien waiver document acknowledging that they were paid and giving up their right to file a lien for that portion of work.

This system exists because, in construction, anyone who provides labor, materials, or services has the right to file a mechanic’s lien if they aren’t paid. This lien is a legal claim against the property that can prevent its sale or refinancing and potentially result in foreclosure to recover payment. Think of it like this: mechanic’s liens are the “stick” (providing legal pressure to ensure payment), and lien waivers are the “carrot” (documenting that payment was received and lien rights are waived).

What are the types of lien waivers?

There are four main types of lien waivers:

1. Conditional progress waivers: Sometimes referred to as conditional partial waivers, these indicate that a party will waive their lien rights for work done up to a specific payment, but only once that payment clears.
2. Unconditional progress waivers: Otherwise known as unconditional partial waivers, these immediately waive lien rights for a specific payment. (It’s in a party’s best interest to only sign these once they’ve secured payment.)
3. Conditional final waivers: These indicate that the party will waive their lien rights for the entire project once final payment is received.
4. Unconditional final waivers: Upon signing, these immediately waive all lien rights on a project (again, it’s highly recommended that a party only signs these once they’ve been paid in full—retention included).

One other important distinction to note is the difference between primary lien waivers and lower-tier lien waivers.

• Primary lien waivers are the documents contractors complete and submit to the general contractor (GC) or owner. These waivers release their right to file a lien for work performed.
• Lower-tier waivers are completed by any sub-tier contractors, materials suppliers, and vendors working under the primary contractor. These documents waive these lower-tier parties’ rights to file liens for their work. The primary contractor bears the responsibility for collecting these and submitting them to the GC or owner. 

How are lien waivers typically exchanged or submitted?

Each of the four main waiver types above needs to be sent out at specific times during the billing and payment cycle. The simplest way to remember when to send which is to lock in that progress lien waivers are tied to progress payments, and final lien waivers are tied to your final billing on the job. 

Here’s the complete breakdown for all four types:

• Conditional progress waivers are submitted with progress pay applications before a party is paid.
• Unconditional progress waivers are submitted after a progress payment is received.
• Conditional final waivers are submitted with the final progress pay application before a party is paid.
• Unconditional final waivers are submitted after receiving final payment on a project, including retention.

Failure to submit the right lien waiver at the right time can hold up payments, a costly mistake in an industry known for its tight margins. To that end, proactively managing lien waivers is the best way to avoid errors, streamline payments, and build solid relationships with other project stakeholders. (Our comprehensive lien waiver guide breaks down everything contractors need to know to master this essential process.)

Taking this a step further, modern solutions like Siteline enable contractors to digitize their lien waiver workflows end-to-end. Teams can create and send waiver requests, collect e-signatures from vendors and subcontractors, track completion status in real-time, and submit executed waivers to clients—all within a single system. This automated approach helps contractors collect waivers faster while preventing payment delays that often stem from compliance holds.

Are there specific forms for lien waivers?

Yes, and this is where things get tricky. As mentioned earlier, lien waiver form requirements can vary from state to state. Some states have very strict stipulations about the format and language used in lien waivers (*cough, cough,* “Georgia”). Using the wrong form or not including the right information can invalidate the waiver and create a real headache for everyone involved. 

You’ll find the correct form guidelines for each state, in addition to other key lien waiver regulatory details, by clicking through on the map below.