Whether you’re a general contractor (GC), subcontractor, or property owner, understanding Indiana 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.
It’s vital to familiarize yourself with state-specific lien waiver requirements to ensure compliance, prevent payment disputes, and ultimately protect your rights (and your bottom line). So grab your hard hat, and let’s dive into the world of Indiana 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.)
While Indiana doesn’t regulate its lien waivers with specific or statutory forms, the state does place restrictions on which provisions can be included within the contract that governs them. Specifically, parties cannot waive lien rights in the contract, and agreements that waive subcontractors’ rights to file a mechanic’s lien before payment are void.
This is good news for subcontractors and suppliers alike—you’ll be contractually protected to obtain payment for the work you complete. While the state offers this buffer, make sure you review the contract in full to clarify any confusing language or remove questionable clauses.
Here’s what you need to know when handling lien waivers in Indiana:
- Waivers must clearly state the amount being waived and the property to which they apply. (Review basic lien waiver contents here.)
- In Indiana, conditional lien waivers are preferred. Unconditional lien waivers are accepted too, unless they function as advance lien waivers.
- Pay-if-paid clauses are valid here, which 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.)
Indiana does not require a specific or statutory lien waiver form.
In Indiana, conditional lien waivers are preferred. The state restricts unconditional lien waivers if they function as advance lien waivers.
In Indiana, conditional lien waivers are preferred. The state restricts unconditional lien waivers if they function as advance lien waivers.
Indiana lien waivers are valid only if they:
- are in writing
- are signed by the waiving party
- clearly state the amount being waived and the property to which they apply
Since filing a mechanic’s lien prior to payment is prohibited in Indiana, parties cannot waive lien rights in the contract.
Indiana statutes clarify that lien waivers are void if lien rights are waived before 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.
Indiana lien waivers are not bound to any specific or statutory lien waiver forms. It’s up to you to read the contract carefully and ensure all project-specific lien waiver requirements are represented.
In Indiana, a lien waiver is considered valid if:
- 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 (electronic signatures are acceptable).
The state also clarifies in statutes that lien waivers are void if contractual provisions waive lien rights prior to payment.
Indiana law doesn’t provide a timeline for when lien waivers should be exchanged. Timing should be spelled out in the contract and abide by general construction best practices. The state prefers conditional lien waivers, which are exchanged with payment applications. Unconditional lien waivers, or waivers exchanged upon receipt of payment, are prohibited if they function as advance lien waivers.
For more information on which lien waivers to use and when, check out this comprehensive guide.
Lien waiver provisions that waive lien rights entirely, waive lien rights prior to payment, or waive claims under payment bonds are prohibited in Indiana. This adds extra protection and leverage to ensure subcontractors get paid for the job.
Disputes over lien waivers in Indiana typically come down to the clarity of language within the lien waiver itself. Since Indiana restricts its lien waivers, and provisions that waive lien rights entirely or prior to payment are prohibited, subcontractors typically have leverage if they review the language carefully and ensure they’re protected prior to starting the job.
If you are unable to resolve the issue directly and need to take the dispute to the court system, we recommend consulting with a construction law attorney familiar with Indiana lien laws.
To learn more about Indiana lien waivers, we recommend the following resources:
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.