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Lien Waver Example
Do not take chances - get lien wavers signed upon completion of any work performed and before you pay final bill.

A lien waver is an extremely useful document that permits home owners to protect their home from liens being placed on them as a result of sub-contractors or contractors being unpaid. I learned the hard way that you have got to cover yourself every step of the way and this is the best way to ensure no complications surface as the result of your paying off contractors. Even if the contractor or sub-contractor is a trusted friend, make sure they sign the waver before you pay them in full. Lien wavers are not unusual to contractors or sub-contractors, they sign them all the time and don't think twice about it. One thing to keep in mind is that when you pay a contractor who has sub-contracted out much of the work, demand signed lien wavers from each and every sub-contractor that worked on your home as a condition of final payment. Further, require that the contractor to sign a statement saying he has paid every sub-contractor in full and assumes all responsibility for any sub-contractor non payment as part of the work completed and paid in full. Contractors will begrudgingly sign such a document in order to receive final payment however this is a necessary step to ensure you have tied up all lose ends.

Below is an actual lien waver example which was used to cover a drywall hanger that was hired.

Instructions on how to complete a lien waver:

Describe the work in detail listing any materials provided by the sub/contractor, home owner, etc. Also, describe the work and the final state of the house upon completion of the work. In the case of the drywall, you may want all remaining materials removed off the premises and the house swept clean -- a common request but if its not stated in the contract it will be hard to make this a condition of the final payment and lien waver. Make sure the sub/contractor prints and signs his name and also sign your name. Make two copies for both of you to sign - one for you and one for them to go along with the check you give them. If you have hired a contractor who also hires subs, be sure to get lien wavers from each sub that works on your house. If you don't know who the subs are, call your contractor and get a list of them while explaining that you want lien wavers for each and every sub that works on your house at the time of final payment. NOTE: It is best to make this very clear up front rather than make this demand at the 11th hour before final payment - so think and plan ahead. Your contractor will appreciate this greatly.

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