Lien waivers for contractors: types, forms and Georgia rules.

A lien waiver is a signed document in which a contractor, subcontractor or supplier gives up some or all of their right to file a lien on a property, usually in exchange for a payment. Owners and general contractors ask for lien waivers so they know everyone who worked on the job has been paid. For a contractor, the rule is simple: never waive a lien for money you have not received.

What is a lien waiver in construction?

When you work on a property and are not paid, most states let you file a mechanics lien, a claim against the property itself. That right is your strongest tool for getting paid. A lien waiver in construction is how you give that right up, in part or in full, when you are paid. The owner or bank collects waivers before releasing each payment, so they are not surprised by a lien later.

The 4 types of lien waivers

• Conditional progress waiver: waives your lien rights for a progress payment only after the payment clears. This is the safest one to sign before the money arrives.
• Unconditional progress waiver: waives your rights for a progress payment right away, whether or not you were paid. Only sign it after the money is in your account.
• Conditional final waiver: waives all remaining lien rights once the final payment clears.
• Unconditional final waiver: a final waiver of lien that takes effect the moment you sign. Sign it only after the final payment has cleared.

The word to watch is unconditional. An unconditional waiver works even if the check bounces.

Georgia lien waiver rules

Georgia is one of the states with its own statutory lien waiver forms. Georgia law uses two forms: an interim waiver and release upon payment, and a waiver and release of lien upon final payment. A waiver in Georgia must follow the statutory form closely to be valid.

Georgia changed its rules for waivers signed from 2021 on. Under the updated law, a waiver releases lien rights only to the extent of the payment actually received. This made Georgia safer for contractors than it used to be, but you still need the correct form and the correct amount on it.

Lien laws, deadlines and forms change. Use the current statutory form for your state and have a construction lawyer review your process. This page explains the basics. It is not legal advice.

What goes on a lien waiver form

• Your company name and the name of the person you are waiving rights against, usually the owner or GC.
• The property address and job name.
• The payment amount the waiver covers.
• The date the work covered by the payment was finished through.
• Whether it is conditional or unconditional, progress or final.
• Your signature and the date. Some states require a notary.

When contractors should sign

1. With each progress invoice, send a conditional progress waiver for that amount.
2. When the payment clears, give an unconditional progress waiver if the owner or GC asks for one.
3. At the end of the job, send a conditional final waiver with your final invoice.
4. After the final payment clears, sign the unconditional final waiver.

Ask your own subcontractors and suppliers for waivers too. If you pay a sub and they do not pay their supplier, the supplier may still be able to file a lien on your client's home.

Common lien waiver mistakes

• Signing an unconditional waiver before the check clears.
• Signing a waiver for a larger amount than you were paid.
• Signing a final waiver while extra work is still unpaid.
• Losing track of which waivers you sent for which payments.

Most of these come from one problem: not knowing exactly what has been billed and paid on each job. See how contractors get paid for setting up a payment schedule that waivers can follow.

Lien waiver FAQ

Do homeowners ask for lien waivers?

More and more do, especially on larger remodels or when a bank is paying out a renovation loan. Even when the client does not ask, offering a conditional waiver with each invoice looks professional and builds trust.

Is a lien release the same as a lien waiver?

Not quite. A lien waiver gives up the right to file a lien in the future for the amount paid. A lien release removes a lien that has already been filed. Both are signed after you are paid.

What if the client wants an unconditional waiver before paying?

Offer a conditional waiver instead. It protects the client once the money clears and protects you until it does. If they insist, wait until the payment is in your account before you sign.

Do subcontractors need to sign lien waivers?

Yes, when they are paid. A general contractor should collect a waiver from each sub and major supplier with each payment, so the owner is protected from liens filed further down the chain.

Keep payments and waivers in step

A lien waiver is only as accurate as your records. In Vio, every deposit, progress invoice, payment and credit sits on the job, so you can see what has been paid before you sign anything. Read about job costs and payments, learn to track unpaid contractor invoices, or book a demo with Ray.