Summary
Mechanics' lien and bond claim waivers can appear in contracts and in waiver forms for progress and final payments. These waivers may permanently eliminate lien or bond rights, even for future deliveries or even if a bankruptcy court forces you to repay a payment received. Contractors must be able to review and revise waivers to preserve security rights. Many construction contracts state that the supplier waives lien rights on the project. This means what it says in most states. If you sign a contract with a waiver, courts may strike your lien. Lien and bond waiver forms required with payment requisitions can be the kiss of death. It is very important to get your money but do not let cash flow urgency result in long-term losses. Waiver forms vary greatly in their wording and effect. Recognize and revise what you are signing.
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Mechanics' Lien and Bond Waivers
Mechanics' lien and bond claim waivers can appear in contracts and in waiver forms for progress and final payments. These waivers may permanently eliminate lien or bond rights, even for future deliveries or even if a bankruptcy court forces you to repay a payment received. Contractors must be able to review and revise waivers to preserve security rights.
Waiver In ContractMany construction contracts state that the supplier waives lien rights on the project....See the full content of this document
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