Understanding Lien Waivers

Learn how to create, attach, and approve Lien Waivers

Jamaica Go avatar
Written by Jamaica Go
Updated over a week ago

Overview

Lien waivers are documents that waive or release the right to file a lien in exchange for payment. They serve as proofs of payment and are legally enforceable documents. Lien waivers come in two forms: Conditional and Unconditional.

  • Conditional lien waivers are provided by contractors or suppliers before they have been paid, and releases their right to file a lien on the work "upon payment" up until a certain date.

  • Unconditional lien waivers are provided by contractors or suppliers once they have been paid, and officially negates their right to file a lien on the work since payment has been received.

It is recommended that the Workspace Administrator set up applicable Lien Waiver templates prior to using this feature. To learn more on how to do this, click here.

Process

  1. Within the applicable project, using the project drop-down menu, go to Invoicing & Pay Applications

  2. On the listing page, note the column Lien Waiver Status. This will show the status per Invoice.

  3. Select the applicable Invoice or create a new Invoice. When the first and second tab are filled out and complete, proceed to the third tab Required Documents.

  4. Click Attach Lien Waiver.

  5. Fill out the information and select the applicable options:

    1. Details β€”

      1. Select whether it is a Conditional or Unconditional waiver

      2. Select whether this is for a partial or final payment

      3. The Lien Waiver amount will be auto-filled based on your SoV entries, but can be modified if needed

      4. Select your Lien Waiver format. You can choose from a template, upload manually, or create from scratch.

      5. Click Next Step

    2. Lien Waiver β€”

      1. If you chose template, or create from scratch, you can see this template here or edit as needed.

    3. Sign Lien Waiver β€”

      1. You can download the Lien Waiver and sign it, then upload the signed copy here.

      2. Check the box and confirm that you have signed the waiver.

  6. You can either Save as Draft and come back to it later, or click Attach Lien Waiver, which effectively approves the Lien Waiver.

  7. If you need to make changes, you can click on the three dots to the right and click Revert to Pending Review

Did this answer your question?