Whether you’re a general contractor (GC), subcontractor, or property owner, understanding Minnesota 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 Minnesota 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.)
Minnesota sides with the majority of 38 U.S. states that don’t provide a specific statutory form for lien waivers. While at first blush it can seem easier to create your own form, sneaky clauses can invalidate your lien rights. It’s important to carefully review every single piece of the contract and request to remove anything that doesn’t support fair payment.
Minnesota construction teams can use any type of lien waiver form, but there are strict guidelines for when they can be exchanged. (Great news here: The rules protect GCs, subs, and suppliers, with more substantial protections than many states we took a look at.) Lien rights cannot be waived in the contract, against a payment bond, or before payment for labor or materials.
Here’s what you need to know when handling Minnesota lien waivers:
- The level of lien rights changes based on your role in Minnesota construction work. Restrictions against waiving lien rights in the contract or before payment don’t apply to “any third party who detrimentally relies upon the waiver.” Read the rules carefully to retain your lien rights.
- The state includes a clause called “prompt payment to subcontractors.” This instructs GCs to pay any subs or suppliers within 10 days of receiving payment, with interest up to 1.5% per month on the unpaid balance. After this 10-day mark, subs have the right to suspend work until payment is received.
- To keep payments rolling, Minnesota requires the owner or anyone else making payments to provide monthly progress payments based on estimates of work completed. This is standard practice unless the job construction says otherwise.
Minnesota does not require a specific or statutory lien waiver form.
Both conditional and unconditional lien waivers are accepted in Minnesota.
Both conditional and unconditional lien waivers are accepted in Minnesota.
To be considered valid in Minnesota, 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
- only waive rights after payment is received
Minnesota statutes expressly outlaw any contracts that waive lien rights for GC, subs, and suppliers.
For Minnesota lien waivers, lien rights cannot be waived against payment bonds or before payment, per state law.
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.
Minnesota does not provide a specific or statutory lien waiver form. Carefully review the lien waiver form as well as the job contract to understand lien waiver requirements for the project and ensure compliance.
Minnesota doesn’t have special requirements for lien waivers when it comes to form or content. For Minnesota lien waivers to be valid, they must:
- Clearly state the amount being waived and the property to which they apply,
- Purport to waive lien rights after payment has been granted, and
- Be signed by the party waiving their lien rights.
Minnesota state law does regulate when lien waivers must be exchanged. Advance lien waivers, or waivers that eliminate lien rights before work has begun, are not allowed here. Parties also cannot waive lien rights against a payment bond or before payment is granted for labor or materials.
(An important note here: This statutory provision doesn’t apply to any “third party” beyond GCs, subs, and suppliers. Make sure to review your lien rights in accordance with your role before doing business in Minnesota.)
This means both conditional lien waivers, or lien waivers exchanged with progress pay apps, and unconditional lien waivers, or lien waivers that are binding upon signing, can both be used in Minnesota. Make sure to exchange unconditional lien waivers only after you’ve been paid to comply with state law.
Since any lien waiver form can be used in Minneapolis, parties can add their own provisions. However, anything asking you to waive your lien rights is not allowed. Look over the lien waiver form and corresponding job contract carefully, then request to remove any fishy clauses.
When it comes to lien waiver disputes in Minnesota, GCs, subs, and suppliers have the upper hand right off the bat, thanks to state statutes. Lien waivers are invalid if they waive lien rights in the contract, against a payment bond, or prior to payment. This is good news for everyone.
If there is a dispute over your Minnesota lien waiver, start by carefully reviewing each clause, and note the intention to waive your lien rights after conditions have been granted. Consider consulting with a construction law attorney who is familiar with Minnesota lien laws if the dispute cannot be resolved directly.
Your path to expertise in Minnesota lien waivers starts here. Take a look at the following resources before signing that job contract:
- 2017 Minnesota Statutes – 337.10 Building and Construction Contracts; Prohibited Provisions
- 2024 Minnesota Statutes – 514.011 Notice (covers lien requirements)
- Minnesota Department of Labor and Industry – Residential Contractor Licensing (for general contractors)
- Minnesota Department of Labor and Industry – Construction Contractor Registration Program (for commercial contractors and subcontractors)
- Minnesota State Bar Association Construction Law Section
- GCPay Lien Waiver Requirements for Every U.S. State
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.