Todays Webinar Understanding Lien Waivers Welcome to the NCS 2018 Webinar Series NCSwebinar Understanding Lien Waivers Copyright 2018 CampS Associates Inc Lien Waivers Agenda Lien Waivers What and Why ID: 769193
Download Presentation The PPT/PDF document "Today’s Webinar:" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Today’s Webinar: Understanding Lien Waivers Welcome to the NCS 2018 Webinar Series #NCSwebinar
Understanding Lien Waivers Copyright 2018 C&S Associates, Inc.
Lien Waivers: Agenda Lien Waivers: What and Why?Lien Waivers: Best Practices Types of Lien Waivers Avoiding Stalemates Effects on Retainage Lien Statute: Proceed with Caution Review Copyright 2018 C&S Associates, Inc.
Lien Waivers: Defined A document provided by a contractor, subcontractor, supplier or materialman holding rights to a mechanic's lien, stating that they have been paid either partially or in full, waiving future lien rights to the property. Copyright 2018 C&S Associates, Inc.
Why Lien Waivers? Protects the property ownerGenerates a “check & balance” system Copyright 2018 C&S Associates, Inc.
Bank Material Distributor Owner Sub Contractor Sub Contractor General Contractor Sub Contractor Material Supplier Service Provider Material Distributor Building/Land Justifying the Credit The Ladder of Supply Claims filed below this line may be questionable.
Why Lien Waivers? Protects the property owner Generates a “check & balance” system Invalidates lien filings when payment has been made Copyright 2018 C&S Associates, Inc.
Lien Waivers: Best Practices Designate specific people to review and sign lien waivers Have a company approved standard lien waiver formA standard lien waiver may not be acceptable in all states Copyright 2018 C&S Associates, Inc.
Lien Waivers: Best Practices If your company’s standard waiver form is not acceptable for a given project… Don’t put undue liability on your companyLimit your acknowledgement to the amount of money you’ve received Don’t sign an “unconditional” waiver unless payment has cleared your bank; don’t sign a “final” waiver unless all invoices have been issued Copyright 2018 C&S Associates, Inc.
Lien Waivers: Types All lien waivers are not created equalCircumstances dictate the type of waiver There are four main types of lien waivers:Conditional Unconditional FinalPartial Copyright 2018 C&S Associates, Inc.
Waiver of Lien: Final Waiver states that you have been paid in fullWaives lien rights for the entire project Make sure there are no pending change orders Copyright 2018 C&S Associates, Inc.
Waiver of Lien: Partial States that you’ve been paid for a portion of work/material providedAcknowledges waiver of lien rights for a portion of the project May be based on date parameters or milestones Copyright 2018 C&S Associates, Inc.
Waiver of Lien: Conditional Waiver of lien conditioned upon payment Can be either partial or final“Upon receipt of” and “good funds clearing the bank" A safer alternative Copyright 2018 C&S Associates, Inc.
Waiver of Lien: Unconditional Waiver of lien rights has no conditions Can be either partial or final Only sign once funds have been received and have cleared “Receipt whereof is hereby acknowledged” You can’t “un-ring” the bell! Copyright 2018 C&S Associates, Inc.
The Lien Waiver Stalemate My customer won’t release payment unless I provide an unconditional waiver first. What can I do?Use an attorney as an intermediary Payer puts payment in escrow accountPayee provides attorney with signed waiverAttorney confirms funds have cleared Attorney provides payer with waiver and payee with funds NCS can answer questions regarding this type of arrangement Copyright 2018 C&S Associates, Inc.
Waiver of Lien: Retention Lien waiver is supposed to waive rights to all work and material through a certain date or time period If the owner is holding back retention, an unconditional waiver for the full amount owed can put you at riskTo preserve lien rights on projects with retention: List a precise dollar amount on the waiver, less retention Exclude retainage and clearly note it on the waiver Copyright 2018 C&S Associates, Inc.
Lien Waivers: Areas of Caution! Know the state requirementsBe clear on what you are signing Don’t waive additional rights “Rights of every nature whatsoever” Copyright 2018 C&S Associates, Inc.
Lien Waivers: Don’t Over-Waive! Sauer Incorporated v. Honeywell Building Solutions SES Corporation “Based upon payment of such sums due as of x/xx/xx, Subcontractor hereby waives, relinquishes, and releases its liens, claims, rights and charges of every nature whatsoever which have arisen at law equity, or contract by virtue of such labor, and/or materials furnished said Subcontractor”
Waiver of Lien: Georgia Appears to be conditioned upon getting paidIf you aren’t paid, you must: File affidavit of non-payment within 60 days of waiver signatureOR File lien within 60 days of waiver and within 90 days from Last Furnishing (whichever is earlier) **Filing affidavit does not extend lien deadline** Georgia’s waiver is specific – if you aren’t paid, you must take swift action Copyright 2018 C&S Associates, Inc.
State Specific Lien Waivers Copyright 2018 C&S Associates, Inc.
Creation of Project Specific L ien Waivers Did you know lien waivers are available to you, at NO ADDITIONAL CHARGE, for all projects entered into NCS Online Services? Customizable lien waiver templates are available, in both Word™ and PDF™ format, for all projects housed within your NCS Construction Services online portal. Legal Counsel review is recommended prior to signing a lien waiver. If necessary, NCS can retain an attorney on your behalf. Copyright 2018 C&S Associates, Inc.
Review of Topics Covered Be sure to adopt a company policy on how lien waivers are to be handled Understand the differences between types of lien waiversDon’t put undue liability on your company Know the states where lien waiver requirements may differ If you’re not sure what you are signing, don’t sign it Copyright 2018 C&S Associates, Inc.
Questions & Answers Questions & Answers Copyright 2018 C&S Associates, Inc.
Questions & Comments Thank you for your time! Visit us online: www.ncscredit.com Email: jbailey@ncscredit.com Call: 800-826-5256 X 177 Copyright 2018 C&S Associates, Inc.
Education & Resources Don’t miss our upcoming webinars! View the schedule at: www.ncscredit.com/education NCS webinars are available OnDemand. Contact us to learn more. View NCS Extra Credit videos on our YouTube channel: http://www.youtube.com/user/NCSCredit • Follow us on facebook, Twitter, LinkedIn, YouTube, and Google+ Copyright 2018 C&S Associates, Inc.