Specific Lien Waiver Forms For California Must be Used

Here are a few types of lien waivers and a specific form must be used for each:
Corp & LLC

A mechanics lien in for Corporations and LLCs.

Individual

A mechanics lien in for Individuals.

Waiver templates

Waiver Templates for a variety of use cases.

Prevailing Wage Forms

Prevailing wage forms for variety of use cases.

Requesting, Sending, and Tracking StateName Lien Waiver Forms Manually?

efficiency
How many hours per week does your finance team spend on the lien waiver portion of your billing process?
Bandwidth
Do you have an extra staff member on hand just to keep up with lien waivers?
Management
If you’re managing subcontractors and using multiple suppliers, how many lien waivers are you gathering for each progress payment request?
Tracking & Organization
Are you using spreadsheets to track lien waiver requests and receipts?

Your lien waiver process may be hindering your cash flow. And human error in lien waiver generation can be costly. Flexbase is the finance superapp solution for construction companies, helping them improve cash flow and get paid faster.

Lien Waivers Are Only One Piece of the Construction Billing Process — Flexbase Has Many Other Solutions to Improve Your Cash Flow

California Lien Waiver FAQs

In California, who fills out a lien waiver?

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.

When is a lien waiver needed in California?

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.

How do lien waivers work in California?

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.

What rights are waived with a California lien waiver?

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.

What rights are NOT waived with a California lien waiver?

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

  • Breach of contract
  • Abandonment
  • Recission
  • Fraud
Do I need to use a specific lien waiver form in California?

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.

What happens if I use the wrong lien waiver form in California?

The form could be unenforceable.

Is there more than one type of lien waiver form in California?

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
What is an unconditional lien waiver form?

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.

What is a conditional lien waiver form?

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.

How do I fill out a California construction lien waiver form?

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.

Do California lien waivers need to be notarized?

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

Should I sign a lien waiver before payment 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.

Can a contractor or supplier waive their lien rights in their contract?

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.

Are lien waivers needed on material in California?

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.

This page is intended only for informational purposes. It is not intended to replace the advice of a legal team.  If you have questions about lien waivers or construction lien laws, consult a legal representative.

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