Full question:
What documents are correct for a public job in Indiana, ie.: Public School job? We are a supplier and have been paid for a portion of the balance. We need to supply a waiver for the payment on this school project.
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: Texas
Answer:
When dealing with lien waivers in Indiana, it's important to understand the difference between a lien waiver and a lien release. A lien release indicates that a claim has been satisfied after payment, while a lien waiver relinquishes a known right before work begins. Waivers must be in writing, describe the real estate adequately, and be signed by someone authorized to file a lien.
Typically, no payment is needed in advance if the subcontractor agrees to waive their lien rights and relies on the credit of the owner or general contractor for payment. A lien waiver does not release all claims; it only waives lien rights. Therefore, it's advisable for owners to have contractors sign both a waiver and a release of all claims up to the date of each payment application.
There are different types of lien waivers:
- Interim Lien Waiver: Used for progress payments, waiving lien rights only for the amount paid.
- Unconditional Lien Waiver: Used after final payment, fully releasing all future lien rights.
- Conditional Lien Waiver: Used when submitting a progress invoice, conditioned upon receipt of payment.
When a lien waiver is signed, it forfeits the right to file a mechanic's lien for the payment amount. However, it does not prevent other claims, such as breach of contract or change orders.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.