Full question:
In order to have protection from liens on a remodeling job, does the property owner need both the sworn Contractor's Final Affidavit from the general contractor AND lien waivers from the subs or will the Contractor's Affidavit suffice?
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: Georgia
Answer:
To protect against liens during a remodeling job, property owners should obtain both a sworn Contractor's Final Affidavit from the general contractor and lien waivers from subcontractors. While the contractor's affidavit confirms that the contractor has been paid, it does not guarantee that subcontractors have been paid. Without lien waivers from subcontractors, the property remains vulnerable to their liens, even if the general contractor is fully paid.
Property owners can request lien waivers from subcontractors and material suppliers throughout the construction process. It is advisable to include a requirement for these waivers in the project contract. Lien waivers can be categorized as interim, unconditional, or conditional:
- Interim Lien Waiver: Used for progress payments, waiving lien rights up to a specific date.
- Unconditional Lien Waiver: Used after final payment, fully releasing all future lien rights.
- Conditional Lien Waiver: Used when submitting an invoice, contingent on receipt of payment.
It's important to note that a lien waiver does not release all claims; it only waives the right to file a lien for the specified payment. Owners should consider having contractors sign waivers and releases of all claims to ensure comprehensive protection. This way, they can safeguard against potential disputes over unpaid work or other claims related to the project.
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.