Lien waivers are typically filled out by a member of a finance or accounting team. Everyone involved in a construction project — from suppliers to the general contractor — may send and request lien waiver forms.

In California, lien waivers are requested whenever they are part of a checklist of documents needed for payment. Although lien waivers are not required, they are commonplace in the construction industry.

Lien waivers work to protect everyone involved in a construction project from a mechanics lien. If a stakeholder on a project is not paid, they can place a lien on the property for non-payment. Lien waivers act as a receipt in the construction industry.

Essentially, a lien waiver waives the right to sue a payor for non-payment. The lien waiver acts as a receipt of payment so a lien cannot be placed on a property for the non-payment of construction costs.

Lien waivers do not waive the right to sue for claims of:

• Breach of contract
• Abandonment
• Recission
• Fraud

Yes. Due to state legislation, all contractors, subcontractors, suppliers, etc. working on a California construction project must utilize the same lien waiver forms. The forms should not be altered or amended with provisions.

The form could be unenforceable.

Yes. California recognizes four lien waiver forms:

• Conditional lien waiver upon progress payment
• Unconditional lien waiver upon progress payment
• Conditional lien waiver upon final payment
• Unconditional lien waiver upon final payment

In California, unconditional lien waiver forms are used when payment for supplies or work has been made. You are waiving your right to place a lien on a property for non-payment because payment has been made. It’s important to note that unconditional lien waiver forms do not protect against insufficient funds (a bounced check). So you should only sign an unconditional lien waiver if funds are in your account.

In California, a conditional lien waiver form may be used before payment is made. The “condition” being that payment will be made and lien rights will be waived once payment has been received.

You have two options — manually locate and complete California’s standard lien waiver forms, or use Flexbase’s templates to semi-automate the lien waiver process to ensure compliance and accuracy.

No. Even though it may be common practice for some businesses to request notarization, lien waivers do not need to be notarized in California.

The only lien waiver you should sign before payment in California is a conditional lien waiver form. This means you waive your right to place a lien on the property after payment is received.

No. Lien rights cannot be waived before work begins. The right to place a mechanics lien is a labor law and California explicitly states that lien rights cannot be waived as a part of a contract.

If a contractor or subcontractor requires lien waivers from the suppliers on a project before releasing payment, then yes, lien waivers will be needed for materials.