Whether you’re a general contractor (GC), subcontractor, or property owner, understanding New York 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 New York 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.)
In New York State, lien waivers aren’t regulated in terms of a specific or statutory form that needs to be used. Parties can put anything they want in lien waivers, which means it’s up to you to review it carefully alongside the job contract to protect your right to file a lien in case of payment delays or disputes.
With this in mind, New York puts several guardrails in place to protect GCs, subs, and suppliers. State law notes lien rights cannot be waived in the contract or before payment. This gives construction teams an advantage, as lien rights can only be waived to the extent of work they’ve performed or materials they’ve furnished. Both conditional or unconditional lien waivers can be used here, as long as they’re exchanged in pursuant to or after payment.
New York doesn’t provide a specific or statutory form for lien waivers.
Both conditional and unconditional lien waivers are accepted in New York; unconditional lien waivers must be exchanged after payment.
Both conditional and unconditional lien waivers are accepted in New York; unconditional lien waivers must be exchanged after payment.
To be considered valid in New York, a lien waiver must:
- be in writing
- be signed by the waiving party (electronic signatures are accepted)
- clearly state the amount being waived and the property to which it applies
In New York, parties cannot waive lien rights in the contract.
New York prohibits waiving lien rights before payment unless the lien is subordinated.
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.
No, New York doesn’t provide a specific or statutory lien waiver form. It’s important to read through every single piece of the lien waiver and corresponding job contract to represent any project-specific job requirements and ensure compliance.
While the contents of New York lien waivers are unregulated, they are considered valid when:
- They clearly state the amount being waived and the property to which they apply,
- They demonstrate a clear intention to waive lien rights, and
- They are signed by the party waiving their lien rights.
Lien waivers in New York must be exchanged either in pursuant to or after payment for work performed or materials furnished.
This indicates that lien waivers can either be conditional, or exchanged when submitting a pay application for a progress payment, or unconditional, delivered after receiving payment. (Just a note that unconditional lien waivers are binding upon signing, so don’t make the mistake of signing these documents before getting paid, or you risk invalidating the lien waiver and breaking state law.)
If you’re wondering which lien waivers to use and when, check out this comprehensive guide.
Provisions that attempt to waive your lien rights can’t be added to the contract in New York. This is great news for GCs, subs, and suppliers alike, as it means you maintain your right to file a lien if you don’t get paid on time.
New York State governs New York City lien waivers. This means all of the rules outlined on this page will also apply to construction projects in New York City: Lien waivers must be exchanged pursuant to or following payment for work performed, they can be conditional or unconditional, and there is no specific, state-mandated form to use.
Review this helpful resource to learn about licensing requirements for NYC construction projects in the residential sector.
New York State doesn’t allow waiving lien rights in the contract or before payment, which offers an initial sense of protection in case of any messy payment disputes.
Disputes can happen, and if they do, look over the contract and lien waiver carefully before attempting to negotiate with the other party. If the dispute can’t be resolved directly, consider consulting with a construction law attorney who is familiar with New York lien laws.
To learn more about New York lien waivers, start with this handy list of resources:
- 2023 New York Laws, Article 2, Section 34: Waiver of Lien
- 2023 New York Laws, Article 2: Mechanics’ Liens
- New York Contractor Licensing Guide
- New York City Buildings Home Improvement Contractor License
- New York State Bar Association Construction Committee
- New York City Bar Construction Law Committee
- 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.