Lien waivers are usually completed by a member of your accounting team. All persons participating in a construction project — from suppliers to the general contractor — may send and request lien waiver forms.

Lien waivers are requested when they are included in a checklist of documents required for payment. Even though lien waivers are not mandatory, they are recommended in the construction industry.

Lien waivers protect everyone participating in a construction project from a mechanics lien. When a stakeholder on a job isn’t paid, they may place a lien on the property for non-payment. Lien waivers are used as proof of payment in the construction industry.

A lien waiver waives the right for a payee to sue a payor for non-payment. Because the lien waiver shows proof of payment, a lien can’t be placed on a property based on the non-payment of construction costs.

No. Illinois state legislation does not require a statutory form for lien waivers. Any language and format may be used.

Yes. Illinois recognizes four lien waiver forms, though there is no statutory format for each:

• Partial conditional lien waiver upon progress payment
• Partial unconditional lien waiver upon progress payment
• Final conditional lien waiver upon final payment
• Final unconditional lien waiver upon final payment

In Illinois, unconditional lien waiver forms are used only when payment for supplies or work has been received. Because payment has been made, you waive your right to place a lien on a property. It’s crucial to understand that an unconditional lien waiver won’t protect you against insufficient funds (a bounced check). Only sign an unconditional lien waiver if the money is in your account.

A conditional lien waiver (Illinois) can be used before payment is made. The “condition” being that payment is expected and lien rights are to be waived once payment has been made.

You have three options — create and fill out your own lien waiver form, Illinois lawyers can create a form for your accounting team to complete, or Flexbase’s templates can semi-automate the lien waiver process — ensuring total compliance and accuracy.

No. Even though it may be standard practice for some businesses to request notarization, lien waivers are not required to be notarized in Illinois.

Other than a conditional lien waiver form, you should not sign any lien waiver before payment. This means you waive your right to put a lien on the property only after payment is received.

No. Lien rights can’t be waived before the project begins. Labor law in Illinois explicitly states the right to place a mechanics lien on a property and lien rights are not allowed to be waived in a contract.

Only if a contractor or subcontractor expects lien waivers from the suppliers on a job prior to releasing payment will lien waivers will be required for materials.