Finance – Example of lien waiver

Example of lien waiver

Example of lien waiver: A simple lien waiver form to use or copy

What is a lien waiver form?

If you are familiar with lien waivers and are just looking for the usable lien waiver example, then scroll down and read on.

If you are still not quite sure what a lien waiver is - and you wouldn't be the only one - then here is quick rundown on the all-important lien waiver.

A lien waiver is a document which is completed and issued by a construction party (contractor, subcontractor, materials supplier etc.) declaring that they waive any future lien rights to a property, site or project - usually because they have received payment.

While the lien is in effect, a contractor or other party can use it as leverage in order to get paid. As soon as the lien is waived, the contractor or project party forfeits this power.

Because of this, lien waivers are powerful documents - and can result in serious disputes and issues when not used properly and intentionally.

A lien waiver form can come in various shapes, sizes and content, but the four (4) typical types of lien waivers are:

  • Conditional lien waivers on progress payments
  • Conditional lien waivers on final payment
  • Unconditional lien waivers on progress payments
  • Unconditional lien waivers on final payment

You can probably gather from the wording what each of these lien waivers stands for and does: conditional waivers are issued and are conditional on the payment actually being received etc., while unconditional waivers waive the lien rights with no conditions.

The example lien waiver below is a conditional lien waiver for final payment. It was issued from the contractor to the owner as the final release and waiver of lien.

Example of a completed lien waiver

So what does a lien waiver look like and include?

The following example lien waiver framework shows what a simple lien waiver form will look like.

As with most contractual construction documents, the lien waiver form addresses and provides details for the owner and contractor (or other project parties exchanging the lien waiver).

In this example, the project owner and their details as well as the contractor details are outlined.

The next section of the example lien waiver is the meat of the document. This section specifies and declares the waiving of the lien, as well as the acknowledgement of payment.

And of course, every lien waiver form including this completed lien waiver example will need to included the signature of the contractor or issuing party as well as a witness or certifying party.

Example of lien waiver

Use and customise this lien waiver example for yourself.

Managing your documents and forms more effectively

Lien waivers are just one example of a contractual document or form which construction companies need to create, manage and share across all of their projects.

Managing all of this documentation can be a massive headache and resource drain - costing companies millions in human resources, paper, systems and wasted time which could be spent moving projects forward.

Luckily for these companies, there are better systems available today which provide companies with smart documents like this example lien waiver - and streamline how they can be completed and managed.

Construction quote example

Instead of jumping back and forth between fragmented systems and processes which span across word docs, spreadsheets and PDFs, companies can consolidate their financial documents into a single source of truth.

Using a smarter tool like this, all of your financial documents can be accessed online (from any device), and they can all be shared digitally or downloaded as a PDF document like the completed example lien waiver you saw above.

In addition to speeding up the process of completing and sharing lien waivers - which can be digitally signed by all parties - using a system like this enables companies to standardise and professionalise all of their documents.

Poor document management and lacklustre document management software is often responsible for major construction and project disputes, which can cost companies thousands or millions of dollars in unfair payments.

Managing your documents and lien waivers properly is an integral part of good project management - so make sure you are using a good lien waiver example and good system to manage those waivers.

People in 80+ countries use this financial software to better capture, organise and track project finances.

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About Lance Hodgson

Lance is VP of Marketing at Sitemate. His aim is to bring awareness to a brighter future for the Built World where industrial workers and companies work smarter.

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