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Whether you’re a general contractor (GC), subcontractor, or property owner, understanding Vermont 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 Vermont 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.)
When it comes to lien waivers in Vermont, state statutes are pretty nondescript. The state includes just one lien waiver regulation for parties to follow, outlined in 9 V.S.A. § 1921:
“A lien under this section may not be waived in advance of the time such labor is performed or materials are furnished, and any provision calling for such advance waiver shall not be enforceable.”
This means lien rights can only be waived in connection to work performed or materials secured, which is great news for construction teams.
However, it is completely legal to waive lien rights before payment. To avoid these sticky situations, review the job contract and corresponding lien waiver form carefully. Negotiation to remove any unsavory clauses is best practice.
Vermont does not require parties to use a specific or statutory form.
Both conditional and unconditional lien waivers are accepted in Vermont.
Both conditional and unconditional lien waivers are accepted in Vermont.
To be valid, lien waivers in Vermont must:
- be in writing
- be signed by the waiving party
- clearly state the amount being waived and the property to which they apply
In Vermont, it’s strictly forbidden to waive lien rights in the contract.
Lien rights can be waived before payment in Vermont as long as labor has commenced or materials have been 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.
Vermont doesn’t provide construction teams with a specific statutory form to fill out. Ensure compliance by reviewing the lien waiver and corresponding job contract.
While the contents of Vermont lien waivers are unregulated, lien waivers in the state are considered valid when:
- They clearly state the amount being waived and the property to which they apply,
- They are signed by the party waiving their lien rights, and
- They are exchanged after work begins or materials are furnished.
Here’s where Vermont lien waivers can get murky; Vermont statutes don’t specify when lien waivers must be exchanged, besides the fact that advance lien waivers aren’t allowed in the state.
Determine lien waiver timing based on general construction best practices:
- 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, are typically submitted after payment is received.
For a more detailed breakdown of waiver types and timing, check out our handy lien waiver guide.
Remember this along the way: Since lien waiver forms are created directly by owners, they can add virtually any clause they’d like beyond advance lien waiver provisions. This includes language asking you to waive your lien rights before payment. It’s important to recognize legalese that works against your best interests and negotiate for fair terms.
Contractual provisions that ask parties to waive their lien rights in advance of labor or materials are not allowed in Vermont. Even with this initial protection, it’s still best practice to review the contract to make sure you’re not signing away your leverage for payment.
The last thing you want to experience during your construction job is a messy dispute. If it does occur, review your Vermont lien waiver form and the job contract to make your case. Mediation and negotiation are often the first routes toward resolution.
Your next step would be to consult with a construction law attorney who is familiar with Vermont lien laws; lien waiver disputes in Vermont are typically handled in the state’s civil court.
Vermont lien waiver statutes are limited in scope. Construction teams should familiarize themselves with all the rules before doing business in the state:
- 2024 Vermont Statutes, Title 9, Chapter 51, Subchapter 1: Contractors’ Liens for Labor or Material (covers mechanic’s liens)
- Vermont Secretary of State – OPR: Residential Contractors
- Vermont Department of Public Safety – Division of Fire Safety: Non-Residential Contractors
- Vermont Bar Association Labor & Employment Law Section (log in to join)
- 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.