What Is a Lien Release (Lien Waiver)?

What document protects the owner once a contractor or sub gets paid?

A lien release (or lien waiver) is the signed document waiving the right to file a mechanic's lien for work that has been paid.

What it is

A lien release, also called a lien waiver, is the legal document a contractor or subcontractor signs to give up their right to file a mechanic's lien for work they have been paid for. Conditional waivers are signed in expectation of a payment that has not cleared yet; unconditional waivers are signed after payment is confirmed. Owners collect them to keep clear title as the job is paid down.

Why it matters

Lien waivers gate payment. An owner will not release the next draw, or final payment, without waivers covering the last one, and a contractor will not collect retainage without delivering them. Missing or wrong-type waivers stall the money for everyone in the chain.

How it works

1. Match the waiver to the payment

   Each waiver covers a specific paid amount and period; the type must match whether payment has cleared.
2. Collect down the chain

   The GC collects waivers from subs for the work in each draw before passing waivers up to the owner.
3. Use conditional before, unconditional after

   Conditional waivers go with the request for payment; unconditional waivers follow once it clears.
4. Gate retainage and final payment

   Final payment and retainage release require the closing waivers in hand.

Common mistakes

How Scaftra handles it

Scaftra ties lien waivers to the pay application and payment they cover, so the right waiver type goes with each draw and final payment and retainage release are gated on the waivers being in hand, all on the project record.

Related terms

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