Whether you’re a general contractor (GC), subcontractor, or property owner, understanding Virginia 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 Virginia 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.)
Virginia follows the example of 38 other states in that its lien waiver laws are (mostly) unregulated. The state is explicit about one thing—advance lien waivers. State law notes that GCs, subs, lower-tier subs, and material suppliers alike cannot waive or diminish their lien rights in a contract before labor, services, or materials are provided.
While this is good news, it’s certainly still possible—and legal—for parties to eliminate lien rights through other avenues. Waiving lien rights before payment is allowed in Virginia, and case law from Virginia’s Supreme Court has shown that using more common language in lien waivers can act to waive future lien rights on the project. You don’t want to sign away your ability to get paid fairly for your work. It’s absolutely crucial to review the lien waiver form and corresponding job contract and negotiate against any fishy clauses.
Here’s what you need to know when handling Virginia lien waivers:
- Any laborer who doesn’t have a valid license, certificate, or proper license class won’t be able to claim a lien. Before starting work, check the requirements via the Virginia Department of Professional and Occupational Regulation.
- Virginia lien waivers need to show “consideration,” meaning the exchange of lien rights for work performed or materials furnished is clearly laid out.
Virginia does not provide a specific, statutory lien waiver form.
Both conditional and unconditional lien waivers are accepted in Virginia.
Both conditional and unconditional lien waivers are accepted in Virginia.
To be considered valid, your Virginia 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
In Virginia, it is not allowed to waive lien rights in the contract.
Lien rights can be waived before payment in Virginia.
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.
Virginia lien waiver laws are limited in scope, and there is no specific lien waiver form. This puts owners in the driver’s seat and gives them the power to nullify or even eliminate construction teams’ lien rights. For example, Virginia Supreme Court cases have affirmed that “common language” in lien waivers can support waiving future lien rights for work performed, retention, or materials that haven’t been furnished yet.
While the contents of Virginia lien waivers are largely 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.
Virginia lien waivers can be exchanged anytime after work begins or materials are provided. Follow these standard construction industry timing rules:
- Conditional lien waivers, which are only effective once payment is received, are exchanged with progress payment applications.
- Unconditional lien waivers become binding upon signature. Since lien rights can be waived before payment in Virginia, unconditional lien waivers should only be submitted after payment is received.
Need help deciding which lien waiver to use and when? Check out our comprehensive guide.
Lien waiver provisions that eliminate rights for a GC, sub, or supplier are not allowed in Virginia. State law explicitly notes that lien rights cannot be waived in a contract “prior to providing any labor, services, or materials.”
Virginia state law doesn’t dictate how parties should proceed in case of a dispute. In the absence of such protocol, start by reviewing the lien waiver form and corresponding job contract. Try to mediate directly with the other party, and if this doesn’t work, consider consulting with a construction law attorney who is familiar with Virginia lien laws.
Another point to remember: Virginia penalizes the misuse of lien waiver forms. Anyone who forges a lien waiver form seeking to gain funds will be guilty of a felony.
Knowledge is a surefire way to protect yourself when doing construction business in Virginia. Brush up on the following resources for Virginia lien waivers:
- Code of Virginia, Title 43, Chapter 1, Section 3
- Code of Virginia, Title 43, Chapter 1, Section 13.1 (covers lien waiver misconduct)
- Virginia Department of Professional and Occupational Regulation
- Virginia State Bar Construction Law & Public Contracts Section
- The Virginia Bar Association Construction 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.