What Is a Lien Waiver?
A lien waiver is a document used in construction billing that says, “If I’m paid for this work, I give up my right to file a lien for that amount.” It’s one of the most common documents required with pay applications — and one of the easiest to mess up.
In most construction payment workflows, lien waivers are treated like “backup documentation.” Owners and GCs want proof that subs and suppliers won’t file a lien after they get paid.
What a lien waiver does (in plain English)
A lien waiver is a written statement that the signer is giving up certain lien rights. The key detail is scope: the waiver usually applies to a specific amount and/or a specific billing period.
The simplest way to think about it:
- Progress waiver: “I’m waiving lien rights for work billed through this period.”
- Final waiver: “I’m waiving lien rights for the entire project (up to final payment).”
- Conditional waiver: “This waiver only becomes effective when payment is actually received.”
- Unconditional waiver: “This waiver is effective immediately — regardless of whether the check clears.”
Why owners and GCs require lien waivers
Owners and general contractors use lien waivers to reduce payment risk. If they pay a GC, and the GC doesn’t pay subs or suppliers, those subs/suppliers may file liens. Waivers help create a paper trail showing who was paid and what rights were waived.
Who signs a lien waiver?
The party giving up lien rights signs the waiver — usually the subcontractor or supplier requesting payment. Depending on the contract chain, a GC may also collect waivers from lower tiers.
Lien waiver vs lien release: what’s the difference?
People mix these terms up constantly. In many cases:
- Lien waiver = waives lien rights for work/materials covered by that waiver (often tied to payment).
- Lien release = releases an already-filed lien (after payment or settlement).
The terminology can vary by state and contract language — so if a document title says “release,” read the body carefully.
The most common lien waiver mistakes
Most waiver problems aren’t “legal” problems — they’re workflow problems. These are the mistakes that cause kickbacks and delays:
- Using unconditional waivers before payment clears
- Wrong billing coverage period (missing/incorrect “through date”)
- Owner/GC/customer names that don’t match the pay app or contract
- Amounts that don’t match the current billing amount
- Using generic language in a state that expects statutory language
If you want the shortcut
Start with these two guides — they solve 80% of waiver confusion: