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Hi, Im Karine from 24hr Bookkeeper. Why should you care about lien waivers? Lien waivers should be tied to almost every payment in construction. Their importance should not be overlooked. Ill tell you what they are, why you should send them, and a few best practices from managing those lien waivers. A lien waiver is simply a document that is signed between both parties when payment is exchanged. The main purpose of a lien waiver is to avoid a subcontractor filing a mechanics lien on the property. If Im the person sending a payment to my subcontractor, Id be the one requesting the waiver be signed. Once its signed, that subcontractor cannot file a mechanics lien on the property of the project. Lien waivers can serve additional purposes above protecting against mechanics liens. On basic terms, a lien waiver builds a good relationship between you and your subcontractor. As a subcontractor, you can be assured that your payment has been made because your waiver serves as proof of th
