Whether you’re a general contractor (GC), subcontractor, or property owner, understanding Rhode Island 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 Rhode Island 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.)
Rhode Island is aligned with the majority of U.S. states; lien waivers aren’t regulated through a specific, standardized form. Since parties can include virtually anything they want, it’s important to review the lien waiver and contract with a careful eye.
Good news, though—Rhode Island state law explicitly prohibits waiving lien rights in the contract. Rhode Island lien waivers are only valid and enforceable when they are exchanged pursuant to or after payment for work performed or materials furnished—which means your lien rights are only waived once payment hits your bank account. This protects your right to fair payment throughout the project.
Here’s what you need to know when handling Rhode Island lien waivers:
- Pay-if-paid clauses are valid in Rhode Island if expressly outlined in the contract. This means the GC only needs to pay subcontractors if they are paid by the property owner. (We recommend subs negotiate for the removal of any pay-if-paid clauses in favor of a pay-when-paid clause instead.)
- Both conditional and unconditional lien waivers are welcome in Rhode Island. Remember that unconditional lien waivers are binding as soon as they’re signed. To stay compliant with state law (and avoid payment delays), only sign once you’ve been paid.
Rhode Island does not provide a specific or statutory form.
Both conditional and unconditional lien waivers are accepted in Rhode Island; the latter must be exchanged after payment.
Both conditional and unconditional lien waivers are accepted in Rhode Island; the latter must be exchanged after payment.
To be considered valid in Rhode Island, a lien waiver must:
- be in writing
- be signed by the waiving party (electronic signatures are okay)
- clearly state the amount being waived and the property to which it applies
- be exchanged pursuant to or after payment
Lien rights cannot be waived in the contract in Rhode Island.
In Rhode Island, lien rights cannot be waived prior to payment for work performed or materials furnished.
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.
Rhode Island doesn’t provide parties with a specific or statutory lien waiver form. Add any project-specific details to the overarching job contract to ensure compliance.
Rhode Island lien waivers must follow the rules to be valid and enforceable. Here’s how to ensure lien waivers in Rhode Island check all the boxes:
- They should clearly state the amount being waived and the property to which they apply,
- They must be exchanged pursuant to or following payment, and
- They must be signed by the party waiving their lien rights.
Rhode Island statutes maintain that lien waivers must be exchanged only “with or after payment for the labor performed or the materials furnished.” Lien rights cannot legally be waived until payment is received.
Let’s break down the timing for your Rhode Island lien waivers:
- Conditional lien waivers, which are only effective once payment is received, are exchanged with progress payment applications.
- Unconditional lien waivers, which become binding upon signature, should only be submitted in Rhode Island after payment is received.
For a more detailed breakdown of waiver types and timing, check out our handy lien waiver guide.
Provisions that waive the lien rights of GCs, suppliers, or subs cannot be added to the contract in Rhode Island. This gives parties significant leverage in getting paid for their work.
Though a bit of a headache, lien waiver disputes do happen, so it’s best to be prepared if something goes awry on your Rhode Island construction project.
It’s always a good choice to review the lien waiver form and corresponding job contract as you make your case. Try to mediate or negotiate directly with the other party; if this doesn’t work, you can file a lawsuit in Rhode Island’s District Court or Superior Court.
Consider consulting with a construction law attorney who is familiar with Rhode Island lien laws should your dispute reach the lawsuit stage.
Covering your bases for Rhode Island lien waivers means reading through state statutes and knowing how to get licensed. Here are some resources to get you started:
- 2023 Rhode Island General Laws, Title 34, Chapter 34, Section 28-1 – Improvements by Consent of Owner — Contracts Barring Enforcement of Lien Against Public Policy
- State of Rhode Island Contractors’ Registration and Licensing Board
- Rhode Island Bar Association Labor Law & Employment Committee (log in to join)
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.