What is a lien waiver?
A lien waiver is a signed document in which a contractor, subcontractor or supplier gives up some or all of its right to file a mechanics' lien on a property in exchange for payment. Collecting the right waiver with each payment protects owners, general contractors and lenders from paying twice for the same work.
By Abdul Moeed, Founder & CEO · Updated
Why lien waivers exist
In most US states, unpaid contractors and suppliers can file a mechanics' lien against the property they improved. If a GC pays a subcontractor but the sub doesn't pay its supplier, the supplier may still be able to lien the owner's property. Lien waivers create a paper trail showing each party was paid and gave up its lien rights for that amount.
The four types
| Type | When it's used | Effective |
|---|---|---|
| Conditional progress | With a progress payment request | Only once the payment actually clears |
| Unconditional progress | After a progress payment is received | Immediately on signing |
| Conditional final | With the final payment request | Only once final payment clears |
| Unconditional final | After final payment is received | Immediately — all rights through the end of the job |
A common, safe sequence
- Collect a conditional waiver with each pay application.
- Release payment.
- Collect the matching unconditional waiver once funds have cleared.
- Collect waivers from lower-tier subs and major suppliers too, not just Tier-1.
State-specific forms
A number of states — including California, Texas, Georgia, Florida and others — set statutory lien waiver forms or wording, and a waiver that doesn't follow them may not be enforceable. Check your state's requirements or ask your attorney. This page is general information, not legal advice.
Lien waivers, COIs and W-9s together
Before a vendor is paid, most teams want three things: current insurance, the right lien waiver and a W-9 on file. myCertGate tracks all three together and holds payment until they pass, with lien waivers sent for e-signature and kept as tamper-evident records.
Stop chasing certificates by hand
myCertGate reads every COI, tracks every renewal and holds payment until insurance, lien waiver and W-9 all pass.
Related reading
General information only — not legal or insurance advice. Confirm requirements with your broker or attorney.