Proof of Payment – Partial Lien Waiver

A contractor who performs work on your property has a legal right to lien the property for any unpaid contracted and completed work.

Lien waivers provide you legal protection against contractor liens on your property. To be valid, lien waivers must include specific information, such as contractor name, company contact information, current date, contract date and amount, amounts complete, amount paid to date, authorized signature, and a Notary validation.

Some contractors don’t want to provide lien waivers. In this case you must insist, from the very beginning, that lien waivers be submitted with each draw—for themselves and each sub-contractor.

In the event they don’t submit the lien waivers for their subs, you could authorize payment but withhold the payment pending the receipt of all lien waivers.

Typically, language in the lien waiver makes it automatically good upon payment to the contractor. That way there is no reason the contractor cannot provide it with their invoice. The following figure shows an example of a partial lien waiver.

Use the Partial Lien Waiver, to get a legal release from payment liability for all paid contract amounts.