Whether you’re a general contractor (GC), subcontractor, or property owner, understanding Montana 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 Montana 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.)
Montana lien waivers are largely unregulated. The state doesn’t provide a specific or statutory lien waiver form, and there aren’t many requirements beyond the standard elements; think signatures from the waiving party and a clear intention to waive lien rights.
GCs, subs, and suppliers should take care when signing a construction contract in Montana, as parties can include any provision they want. Well, almost any provision: Montana law forbids contractual provisions attempting to waive lien rights before payment for labor and/or materials and against a payment bond. This gives subs significant leverage in getting paid fairly and on time.
Montana doesn’t require a specific or statutory lien waiver form.
Montana accepts both conditional and unconditional lien waivers. For either, lien rights are not waived until payment is received.
Montana accepts both conditional and unconditional lien waivers. For either, lien rights are not waived until payment is received.
To be considered valid in Montana, 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
Montana state law notes that lien rights cannot be waived in the contract.
In Montana, lien rights cannot be waived before payment for labor and/or materials or against a payment bond.
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.
Montana doesn’t require a specific, statutory form. While this can sound easier at the outset, it can pave the way for errors and reduced lien rights.
To avoid complications, review every portion of the lien waiver and corresponding job contract. Request the removal of clauses that try to eliminate your lien rights. Add in any project-specific requirements to ensure compliance during your project.
There are no specific statutory requirements governing the validity of a lien waiver in Montana when it comes to format or content. Montana lien waivers are valid when:
- They clearly state the amount being waived and the property to which they apply, and
- They are signed by the party waiving their lien rights.
Montana state law notes that lien rights cannot be waived “before the contractor, subcontractor, or material supplier has been paid for the labor, materials, or both labor and materials.”
Lien waivers in Montana can either be exchanged with progress pay apps (conditional lien waivers) or upon receipt of payment (unconditional lien waivers). Construction teams are protected in Montana, as whichever type of lien waiver they use, lien rights can’t be waived until payment comes through.
To choose a lien waiver for your construction project, review this comprehensive guide.
Montana expressly prohibits parties from adding contractual provisions that ask construction teams to waive their lien rights. This is great news for subs in ensuring fair, on-time payment. If you spot any clauses that attempt to nullify your lien rights, request their removal.
Since Montana lien waivers are totally unregulated in both format and content, this can place parties in an uncomfortable legal gray area if a dispute arises.
Disputes over lien waivers in Montana are handled through the District Court system. We recommend reviewing the lien waiver and corresponding job contract carefully, making sure your intention to waive lien rights is clearly demonstrated (or, the legal term for this, “consideration” is in effect).
If the dispute cannot be handled directly between parties, consider consulting with a construction law attorney who is familiar with Montana lien laws.
The key to understanding Montana lien waivers is familiarizing yourself with all the rules. We recommend this selection of helpful resources:
- Montana Code Annotated 2023, Title 28, Chapter 2, Part 7, 28-2-723: Construction Contracts Requiring Lien or Bond Waiver Void
- Montana Department of Labor & Industry – Construction Contractor Registration
- State Bar of Montana Construction Law Section
- Guide to Contract and Property Disputes in Montana
- 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.