Legal

Lien Waiver

A signed document where a contractor or subcontractor waives their right to file a mechanic's lien on the property.

A lien waiver is typically required before each progress payment is released. By signing, the contractor or sub confirms they've been paid through a specific date and waives the right to file a mechanic's lien for that period. Conditional waivers take effect only when payment clears; unconditional waivers take effect immediately. State laws vary significantly — many states have specific lien waiver forms that must be used.

Related terms

Mechanic's Lien

A legal claim against a property by a contractor, subcontractor, or supplier who

Retainage

A percentage of each progress payment withheld until the project is complete, ty

Progress Billing

Invoicing in stages based on percent of work completed, instead of one invoice a

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