Lien waivers are usually provided by
contractors to owners at the time of a
progress payment or final payment. The
waiver certifies to the owner that the
contractor has paid all employees, suppliers,
and subcontractors connected
with the project. This protects the
owner from being double-billed — once
by the contractor and again by a supplier
or sub who was never paid by the
contractor.
Occasionally, however, contractors
supply false lien waivers to further their
own ends at the expense of subcontractors.
Until recently, subcontractors
could not get relief from the courts —
even when they had filed a mechanic's
lien on the owner's property — if the
general contractor had provided a lien
waiver. The current trend, however,