Whether you’re a general contractor (GC), subcontractor, or property owner, understanding Arkansas lien waivers is crucial. These essential documents function as receipts acknowledging payment up to a specific amount, thereby waiving the party’s right to file a lien against the property for that amount. While the concept is straightforward, the practical application of lien waivers can be complex.
Several types of lien waivers exist, each requiring submission at specific times during a project. (For a deeper dive into lien waiver basics, refer to The Ultimate Guide to Construction Lien Waivers for Subcontractors.) Moreover, lien waiver requirements vary by state, with each jurisdiction setting its own rules regarding valid forms, contents, and enforcement.
Understanding these nuanced requirements is important for subcontractors to maintain compliance, prevent payment disputes, and protect their financial interests. So grab your hard hat, and let’s dive into the world of Arkansas lien waivers!
(For more general information on lien waivers, check out this on-demand webinar: End the Whack-a-Mole: Lien Waiver Best Practice for Subs.)
Arkansas lien waivers are completely unregulated when it comes to a specific and statutory form as well as guidelines for when and how the lien waiver is exchanged. While this can offer an initial sense of freedom when working on projects in the state, general contractors, suppliers, and subcontractors alike should be diligent when reviewing and signing Arkansas lien waivers.
Here’s why: It’s completely legal to waive lien rights in the contract before work begins or prior to payment.
To maintain the necessary leverage to get paid for your work, it’s important to review each contractual provision and request the removal of anything unsavory. Arkansas courts will interpret waivers based on intention to waive lien rights, so it’s up to you to clearly outline yours.
Let’s dive into what you should know when handling Arkansas lien waivers:
- Waivers must clearly state the amount being waived and the property to which they apply. (Brush up on basic lien waiver contents here.)
- Pay-if-paid clauses are valid here; if added to the contract, this means the general contractor only needs to pay subcontractors if they are paid by the property owner. (We recommend subs negotiate for their removal in favor of a pay-when-paid clause instead.)
In Arkansas, parties can use their own form; Arkansas lien waivers are not governed by any specific or statutory form.
Both conditional and unconditional lien waivers are accepted in Arkansas.
Both conditional and unconditional lien waivers are accepted in Arkansas.
To be considered valid in Arkansas, a lien waiver must:
- be in writing
- be signed by the waiving party
- clearly state the amount being waived and the property to which it applies
Arkansas law does not include any specific statutory provisions that prohibit waiving lien rights in the contract.
Arkansas has no specific statutory provision that prohibits waiving lien rights prior to payment.
Completing Lien Waivers in Siteline
- Create, monitor, and track all your lien waivers in one place.
- Automatically fill out and send the right waiver at the right time.
- Request lower-tier lien waivers from all your sub-tier contractors, vendors, and suppliers—individually or in bulk.
- Securely collect e-signatures, with automatic reminders for any unsigned waivers.
- Package and submit signed waivers to your GCs directly within Siteline.
Arkansas does not require a specific or statutory lien waiver form. That being said, when handling Arkansas lien waivers, make sure to carefully review the form and corresponding contract to ensure compliance via project-specific requirements.
Arkansas doesn’t have specific statutory requirements for lien waivers. A lien waiver in Arkansas is considered valid when:
- It clearly states the amount being waived and the property to which it applies, and
- It is signed by the party waiving their lien rights.
Just as Arkansas doesn’t specify the form that should be used for a lien waiver, the state also doesn’t clarify the timing in statutes. Advance lien waivers are allowed in this state, which means that lien waivers can be exchanged before work begins on a project.
We recommend you determine timing based on general construction best practices, and reflected details in the contract. Lien waivers in Arkansas can be exchanged with payment applications (conditional lien waivers) or upon receipt of payment (unconditional lien waivers).
If you’re deciding on which lien waiver subset to use and when, review this comprehensive guide.
Lien waiver provisions can be added to the contract in Arkansas—including those that purport to waive lien rights. We don’t recommend agreeing to this, as it can eliminate subcontractors’ leverage to get paid. Review the contract carefully to remove and replace any murky clauses.
If there is a dispute over lien waivers in Arkansas, courts will likely assess the validity of the waiver and its corresponding contract by examining if the waiving party demonstrated its intention to waive lien rights within. This is why it’s critical to make sure the language within your lien waiver and contract is crystal-clear, spelling out terms of when and how parties will waive lien rights.
If the dispute cannot be resolved directly, consider consulting with a construction law attorney familiar with Arkansas lien laws.
Since Arkansas lien waiver laws tend to be a bit open-ended, it’s important to review state statutes and other resources before completing work in the state. We’ll recommend places to start:
Automate the process with Siteline. Contractors use our lien waiver tool to digitize all of their lien waiver forms (primary and vendor), send waiver requests to lower-tier contractors and vendors, collect e-signatures, and submit completed waivers to their clients—without ever leaving the system. Siteline even provides centralized tracking to help contractors monitor vendor waiver statuses to see who’s received the form, who’s opened it, and who has (or hasn’t) signed. This means contractors can collect waivers faster while eliminating payment delays caused by compliance holds.
Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. We recommend you consult a qualified attorney for advice specific to your situation.