Common Lien Waiver Mistakes That Delay Payment
Most lien waiver problems aren’t legal disputes — they’re small mistakes that cause GCs and owners to kick back paperwork and freeze payment approvals.
If your lien waiver has ever been “almost right” but still rejected, you’re not alone. These are the mistakes billing teams run into over and over again.
Mistake #1: Using the wrong waiver type
The most common mistake is submitting an unconditional lien waiver before payment has cleared. This makes owners nervous and puts you at risk.
If payment hasn’t been received yet, a conditional waiver is usually the safer choice.
Mistake #2: Progress vs final confusion
Submitting a final lien waiver on a mid-project pay application is a guaranteed red flag. GCs expect progress waivers until final payment is complete.
Mistake #3: Amounts that don’t match the pay application
Even a $0.01 mismatch between the waiver and the pay app can cause rejection. The waiver amount should always match the current billing amount exactly.
Mistake #4: Missing or incorrect coverage dates
Many waivers require a clear “through date” or coverage period. Missing or incorrect dates make it unclear what work is being waived.
Mistake #5: Party names that don’t match
Owner, GC, and claimant names should match the contract and pay application. Abbreviations, typos, and “close enough” names are a common reason for kickbacks.
Mistake #6: Using generic language where it doesn’t fit
Some states expect statutory lien waiver language. Generic templates may be rejected even if the information is technically correct.
Why this matters
Every rejected lien waiver usually means a delayed pay application — which means delayed payment.
How to reduce waiver rejections
- Match waiver type to payment status
- Match progress/final to billing stage
- Double-check amounts and dates
- Use consistent party names
- Avoid generic templates when state rules apply