{"id":900787,"date":"2023-01-26T14:52:00","date_gmt":"2023-01-26T21:52:00","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=900787"},"modified":"2023-01-25T15:20:13","modified_gmt":"2023-01-25T22:20:13","slug":"lien-subs-dont-waive-your-right","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/lien-subs-dont-waive-your-right\/","title":{"rendered":"Construction Contract Tip \u2013 Subcontractors, Don\u2019t Waive Your Right to a Lien"},"content":{"rendered":"\n<p>Sam DeBaltzo | <a href=\"https:\/\/tonkon.com\/ear-to-the-ground-blog\/construction-contract-tip-subcontractors-dont-waive-your-right-to-a-lien\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Tonkon Torp<\/a><\/p>\n\n\n\n<p>In the course of reviewing construction subcontracts, I\u2019ve recently seen provisions similar to the following (simplified for convenience and confidentiality):<\/p>\n\n\n\n<p>\u201cThe subcontractor shall reimburse the [Contractor and\/or Owner] for any costs and expenses for any claim, obligation, or lien that arises from the performance of the work.\u201d<\/p>\n\n\n\n<p>\u201cThe subcontractor shall remove and discharge any lien, claim, security interest, or other encumbrance related to the subcontractor\u2019s performance of the work.\u201d<\/p>\n\n\n\n<p>The provisions are often followed with boilerplate requirements for paying the third-party claimant, bonding, reimbursement of attorneys\u2019 fees, indemnification responsibilities, or other ways of providing security to the owner or general contractor.&nbsp;<\/p>\n\n\n\n<p>The purpose of these types of provisions is clear: owners want their <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-liens-rights\/\" target=\"_blank\" rel=\"noreferrer noopener\">projects completed free of liens<\/a>, and they want the person responsible for the work to make sure that happens. This is an understandable position, and it is reasonable for any construction contract to require lien waivers. The problem is that these provisions do not require payment prior to the waiver.<\/p>\n\n\n\n<p>Yes, if a subcontractor is paid, it should agree to keep the project clear of liens and remove any liens filed by its respective subcontractors or suppliers. But, until payment has occurred, retaining the powerful lien right is essential for any prudent subcontractor. Whether intentional by the drafting party or not, these provisions suggest the subcontractor is agreeing to waive its lien rights even when the owner or contractor fails to pay.&nbsp;<\/p>\n\n\n\n<p>With these specific provisions, I find the solution is simple and relatively unobjectionable; I like to add the phrase \u201cprovided subcontractor has been paid for the work\u201d at the beginning of the phrase. Subcontractors should be on the lookout for these and other potential pitfalls, and make sure they do not unwittingly leave themselves unprotected by accepting provisions that are inherently unfair.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\" target=\"_blank\" rel=\"noreferrer noopener\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sam DeBaltzo | Tonkon Torp In the course of reviewing construction subcontracts, I\u2019ve recently seen provisions similar to the following (simplified for convenience and confidentiality): \u201cThe subcontractor shall reimburse the [Contractor and\/or Owner] for any costs and expenses for any claim, obligation, or lien that arises from the performance of the work.\u201d \u201cThe subcontractor shall&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/lien-subs-dont-waive-your-right\/\">Continue reading <span class=\"screen-reader-text\">Construction Contract Tip \u2013 Subcontractors, Don\u2019t Waive Your Right to a Lien<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9,10772],"tags":[9895,224,184],"class_list":["post-900787","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","category-mechanics-lien-law","tag-advise-consult","tag-construction-contract","tag-mechanics-lien-law","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Construction Contract Tip \u2013 Subcontractors, Don\u2019t Waive Your Right to a Lien - Advise &amp; 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