Whether you’re a general contractor (GC), subcontractor, or property owner, understanding Pennsylvania 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 Pennsylvania 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.)
At first glance, Pennsylvania lien waiver regulations are short and sweet—but these state statutes are actually quite complex, and the rules depend on the type of role you hold on the construction project and the job sector you’re a part of.
Let’s start with residential construction projects. GCs can waive lien rights on behalf of lower-tier contractors if they waive their own lien rights in writing first, notify these contractors, and file a lien waiver document. This document is referred to as a “Stipulation Against Liens,” commonly called a “Stip.” This must be filed in the prothonotary’s office in the county where the project is based either before work begins, within 10 days after the contract starts, or within 10 days of the subcontractor’s contract.
Subs can waive their own lien rights for residential projects as well. The state statute doesn’t denote when lien rights can be waived in Pennsylvania; however, this means it’s perfectly legal for parties to waive lien rights in the contract, before work even begins, or before payment is granted. Subs must stay vigilant in reviewing the contract and request to remove any clauses that don’t protect their lien rights.
Time to move on to non-residential projects. This side of things offers more protections to lower-tier contractors, as lien waivers can only be exchanged pursuant to or following payment for work performed or materials furnished. The law expressly states that lien rights can only be waived to the extent of payment received, which protects subs from payment loss or delay.
Additionally, GCs can waive the lien rights of subs on non-residential projects only if they post a payment bond “guaranteeing payment for labor and materials provided by subcontractors.” These regulations offered on non-residential projects provide more leverage for fair payment to lower-tier contractors.
By taking time to understand how Pennsylvania lien laws apply to your role and the type of project you’re working on, you can move forward with confidence and a firm grasp of complicated lien waiver regulations.
Pennsylvania lien waivers aren’t governed by a specific or statutory form.
Both conditional and unconditional lien waivers are allowed in Pennsylvania. For non-residential projects, the latter must only be exchanged after payment, unless there is a payment bond.
Both conditional and unconditional lien waivers are allowed in Pennsylvania. For non-residential projects, the latter must only be exchanged after payment, unless there is a payment bond.
To be considered valid in Pennsylvania, 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
Additionally, if the lien waiver is for a non-residential project, it must only be exchanged pursuant to or following payment for work performed or materials furnished.
The lien rights of GCs or subs can be waived in the contract for residential projects in Pennsylvania. This isn’t allowed for non-residential projects.
In Pennsylvania, lien rights can be waived before payment for residential projects only, or through a payment bond for non-residential projects.
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.
Pennsylvania doesn’t provide a specific statutory lien waiver form. It’s up to you to review the lien waiver and contract carefully and request to remove any clauses that nullify your lien rights. Add any details central to your scope in the overarching job contract to ensure compliance.
The validity of Pennsylvania lien waivers hinges on the type of project you’re working on:
- For non-residential projects, lien waivers must be exchanged pursuant to or following payment for work performed or materials furnished.
- For residential projects, these rules don’t apply, and any timing goes.
Beyond this, lien waivers in Pennsylvania need to follow these standard rules:
- They should clearly state the amount being waived and the property to which they apply, and
- They must be signed by the party waiving their lien rights.
For residential projects, lien waivers can be exchanged anytime, even before work begins or before you’re paid. (We don’t recommend this; negotiate against any contractual provisions that attempt to take away your lien rights and put some guardrails in place for fair payment instead.)
For non-residential projects, lien rights can only be waived to the extent of payment received or materials provided, or if the GC posts a bond guaranteeing payment for subs.
No matter the type of project you’re a part of, Pennsylvania lien waivers can either be:
- conditional, which are typically exchanged with progress pay apps, or
- unconditional, which are exchanged after payment is received. (Remember that unconditional lien waivers are binding upon signing, so only do so after you’re paid.)
For a more detailed breakdown of waiver types and timing, check out our handy lien waiver guide.
Pennsylvania distinguishes between residential and non-residential projects when it comes to lien waivers. Provisions waiving lien rights are allowed for residential jobs, while they are expressly forbidden for non-residential projects.
Adding to this, Pennsylvania Statutes Title 49 Section 1406 notes that any contractual provisions between the owner and a contractor that nullify lien rights for a subcontractor or delay their payment beyond four months after the project ends “shall be grounds for recision by the subcontractor of his contract with the contractor,” unless notice was given or provisions were filed in the prothonotary’s office.
Disputes over Pennsylvania lien waivers can be complicated, especially if you don’t know where to start. First, review the lien waiver and corresponding job contract to get the full picture of your lien rights for the project.
Attempting to negotiate directly with the other party is often the best route. If this doesn’t work out, the next step would be to consult with a construction law attorney who is familiar with Pennsylvania lien laws.
Pennsylvania lien waivers can be tricky, and the rules depend on which type of project you’re working on. Familiarize yourself with need-to-know basics through this handy list:
- Pennsylvania Statutes Title 49 Section 1401 – Waiver of Lien by Claimant
- Pennsylvania Statutes Title 49 Section 1402 – Waiver by Contractor; Effect on Subcontractor
- Pennsylvania Statutes Title 49 Section 1406 – Right of Subcontractor to Rescind After Notice of Contract Provisions
- Guide to Pennsylvania Lien Laws
- Commonwealth of Pennsylvania Department of Labor and Industry – Contractor Licensing
- Pennsylvania Bar Association Labor and Employment 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.