Lien Waivers Explained: Protect Yourself Before Paying a Contractor

What is a Lien Waiver?

A lien waiver is a legal document where a contractor, subcontractor, or supplier gives up their right to file a construction lien (mechanic's lien) against your property after receiving payment.

Why Lien Waivers Matter

Without a lien waiver, a subcontractor who wasn't paid by your general contractor could file a lien against YOUR property — even if you already paid the GC in full.

Types of Lien Waivers

When to Use Each Type

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Provincial/State Rules

Ontario (Construction Act):

Alberta:

US (varies by state):

Best Practices

Generate free lien waiver forms for any province or state using our legal tools.

1. Conditional Waiver on Progress Payment — Waives lien rights for work done so far, but only once the check clears
2. Unconditional Waiver on Progress Payment — Immediately waives lien rights (riskier for the payee)
3. Conditional Waiver on Final Payment — Covers all work; conditional on payment clearing
4. Unconditional Waiver on Final Payment — Fully releases all lien rights

• Liens must be filed within 60 days of last work
• Holdback of 10% is required for 60 days
• Lien waivers are enforceable but must be voluntary

• 45-day lien period from substantial completion
• 10% holdback required

• Some states require specific statutory forms
• California, Texas, Florida have mandatory waiver forms
• Always check local requirements

1. Request a lien waiver with every progress payment
2. Make waivers conditional until payment clears
3. Get waivers from ALL subcontractors, not just the GC
4. Keep copies of all waivers with your contract file
5. Use our Lien Waiver Generator for compliant forms