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  1. #1
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    Default Lien Waiver Question

    I'm getting a barn built and need to pay $19k when materials are delivered, I believe to the barn builder (contractor). Do I need a lien waiver from the barn builder or from the materials supplier for the materials payment? If from the materials supplier, does the builder (contractor) get it and provide it to me or do I have to work with the materials provider. Thanks.

  2. #2
    Super Star Member brin's Avatar
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    Default Re: Lien Waiver Question

    Quote Originally Posted by Believer View Post
    I'm getting a barn built and need to pay $19k when materials are delivered, I believe to the barn builder (contractor). Do I need a lien waiver from the barn builder or from the materials supplier for the materials payment? If from the materials supplier, does the builder (contractor) get it and provide it to me or do I have to work with the materials provider. Thanks.

    Here is what I have always done > Each time I pay for the materials delivered to my building site I have the the suppliers sign a lien waiver, when I pay the contractor and each sub I have them sign lien waivers and then you rest easy. Don't forget any material supplied by or ordered by a sub or contractor...you need lien waivers from whoever they ordered the material...the thing is they may have told the supplier you would pay later..and then when you get the invoice they are paid and long gone.
    Bob

    WORRYING does not take away tomorrow's TROUBLES, it takes away today's PEACE.


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  3. #3
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    Default Re: Lien Waiver Question

    Thanks brin. Makes sense. If I pay the contractor for supplies, not the supplier, get a conditional waiver from the supplier, it's still conditional on the contractor paying the supplier--doesn't seem like I'm covered. If I get a waiver from the contractor, the supplier could still file a lien if not paid. What am I not understanding? Maybe I should only pay the supplier for the materials. Thanks again.

  4. #4
    Veteran Member dstig1's Avatar
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    Default Re: Lien Waiver Question

    Paying material suppliers directly and getting the waiver from them is the only sure way I know of. And it's the safest route for you.
    -Dave

    "Being a pessimist is great. You can't lose. Either you end up being right...or you are pleasantly surprised."

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  5. #5
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    JD 2210

    Default Re: Lien Waiver Question

    The last time I was in this situation, i was having my roof replaced.

    I had paid 30% down to the roofing contractor when the contract was signed. (I know, risky behavior)

    When the shingles were delivered, the roofing contractor paid the supplier on the spot and the supplier handed me a lien waiver.

  6. #6
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    Default Re: Lien Waiver Question

    Quote Originally Posted by dstig1 View Post
    Paying material suppliers directly and getting the waiver from them is the only sure way I know of. And it's the safest route for you.
    If you pay the supplier for the materials yourself, there is no need for a waiver, you have the signed receipt. That's proof enough in any court.

    If the contractor pays them, then you do need a waiver.

    We just finished (in March) building our new home. Some we did, some the contractor did, but everything they did was paid through the bank on a "voucher" system. The voucher was like a check. The supplier got the voucher, for the amount owed at the time (in case it wasn't all materials needed, only partial delivery). In order to get his cash, the supplier (or sub contractor) had to sign the back of the voucher, which was a waiver, and give it to the bank. The bank signed it and handed him a check. That way everyone was protected, and folks got paid every friday for work completed.

    Subs like them cause they get a regular paycheck every fri, if the job is longer than one week.

    Tell your contractor YOU will pay the materials directly, and give him the rest. Then you will have a receipt (or a waiver too, if you so desire) for materials and a waiver for the rest from the contractor.

  7. #7
    Elite Member Obed's Avatar
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    Default Re: Lien Waiver Question

    On our house building project which is currently in progress, we pay the building supplier directly. Sometimes the subs will buy some materials and get reimbursed by us. Whenever we pay the subs for labor or materials, (we are the general contractor), we always get a partial lien waiver signed by the sub before we hand them the check. When the sub's work is completed, we get them to sign a final lien waiver.

    Also, I don't like to pay "ahead". When we hire a sub, we have a payment schedule in the contract that is signed by us and the sub. We have negotiated payment schedules with the subs that were different that what the sub asked for before hiring them if the sub was asking for too much up front or if the sub's final payment was too small. I'm nervous when a sub's final payment is a miniscule amount because they might take forever to finish the loose ends because they've already been paid the bulk of their money. At our previous house, we got some water damage under a door during a remodel because the sub took forever to come back and finish the job. Once the sub had been paid for the bulk of the job, our house became his lowest priority.

    Obed
    John Deere 4210 (28 HP) FEL, BH, 6' Box Blade, Loader Forks

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  8. #8
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    Default Re: Lien Waiver Question

    Quote Originally Posted by Believer View Post
    I'm getting a barn built and need to pay $19k when materials are delivered, I believe to the barn builder (contractor). Do I need a lien waiver from the barn builder or from the materials supplier for the materials payment? If from the materials supplier, does the builder (contractor) get it and provide it to me or do I have to work with the materials provider. Thanks.
    Not knowing your local I can only speak for my state in which the materials supplier will file a preliminary lien notice on your property (you will receive a copy) which allows them to excersise a lien in due time if the/your contractor does not pay the supplier for your delivered goods. Careful here-the contractor by just sending a check to supposedly cover your material bill to the supplier may get posted to a more historically outstanding debt even though it was your money. STAY IN TOUCH WITH THE SUPPLIER'S ACCOUNTS RECEIVABLE DEPARTMENT TO INSURE THAT YOUR GOODS HAVE BEEN PAID FOR.

  9. #9
    Veteran Member dstig1's Avatar
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    Default Re: Lien Waiver Question

    Quote Originally Posted by handirifle View Post
    If you pay the supplier for the materials yourself, there is no need for a waiver, you have the signed receipt. That's proof enough in any court.

    If the contractor pays them, then you do need a waiver.
    Banks that are financing construction often want waivers from all suppliers. And frankly it doesn't hurt. They could argue the receipt didn't cover all materials they sold you, perhaps. Waiver says you are covered for sure as they have to put pen to paper saying they are paid in full.
    -Dave

    "Being a pessimist is great. You can't lose. Either you end up being right...or you are pleasantly surprised."

    L5240HST, QA, 824 Loader, 48" Forks, 48" Grapple, rear blade, box blade, landscape rake, Ancient Farmi Skidding winch
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  10. #10
    Platinum Member
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    Default Re: Lien Waiver Question

    Quote Originally Posted by dstig1 View Post
    Banks that are financing construction often want waivers from all suppliers. And frankly it doesn't hurt. They could argue the receipt didn't cover all materials they sold you, perhaps. Waiver says you are covered for sure as they have to put pen to paper saying they are paid in full.
    If you have a receipt for say, $13, 210 of material delivered, and it's signed and marked "paid in full" what's the difference? There is nothing there to contest. If they want to claim more goods delivered, they'd have to have a bogus delivery receipt, signed by someone claiming they got it.

    FYI, if a contractor is crooked, he can ALWAYS have material delivered elsewhere, and say it's for your job, for which the supplier could try to lein you, but that can happen even if you had waivers signed for every nail and board ever delivered to YOUR job.

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