Are you a contractor, subcontractor, or supplier working on a construction project in Georgia? If so, you may be required to sign a lien waiver. Understanding the use and types of Georgia lien waiver templates will help you protect your business.
A lien waiver is a legal document that states that you have been paid for your work or services on a construction project and that you waive your right to file a lien against the property. Lien waivers are often required by property owners, lenders, and general contractors as a condition for payment.
Types of Lien Waivers
There are two basic types of lien waivers: unconditional lien waivers and conditional lien waivers. Unconditional lien waivers release all of your lien rights, regardless of whether or not you have been paid. Conditional lien waivers only release your lien rights if certain conditions are met such as receiving full payment for your work.
In Georgia, there are two types of lien waivers that are commonly used: the Georgia Lien Waiver and the AIA Document G702 Lien Waiver and Release of Claims. The Georgia Lien Waiver is a statutory form that is specific to Georgia. The AIA Document G702 Lien Waiver and Release of Claims is a standardized form that is used nationwide.
When to Use a Lien Waiver
Lien waivers are typically used when a contractor, subcontractor, or supplier has completed their work on a construction project and has been paid for their services. Lien waivers can also be used to release lien rights before work has been completed, such as when a contractor is paid in advance for their work.
It is important to note that lien waivers are not required by law in Georgia. However, many property owners, lenders, and general contractors require lien waivers as a condition for payment. If you are asked to sign a lien waiver, it is important to carefully review the document before signing it. You should make sure that you understand what you are signing and that you are comfortable with waiving your lien rights.
If you are not comfortable with signing a lien waiver, you can negotiate with the party requesting the waiver. You may be able to get them to agree to a conditional lien waiver that only releases your lien rights if certain conditions are met. You can also try to get them to agree to a lien release bond, which is a type of insurance that protects the property owner from liens.
If you have any questions about Georgia lien waiver templates or lien waivers in general, you should consult with an attorney.
