Legal Question in Construction Law in Michigan
Waiver of Lien
Q #1: Is it legal for a General Contractor to require a ''Full Unconditional Waiver of Lien'' from a subcontractor before they will pay the subcontractor for services?
I am sure you are aware this particular waiver states, ''having been fully paid and satisfied, all my/our construction lien rights against such property are hereby waived and released.''
Q #2: Whether or not this is legal, I, the subcontractor, am not willing to sign this waiver. My bill is for additional work, which the insurance company was not willing to pay the General Contractor for. Therefore, I suspect the General Contractor will not pay me. In addition, the General Contractor did NOT require me to sign this form prior to payment of the original work order, a much larger sum. FYI- the total sum of additional work was approved by the General Contractor prior to commencing any work on site. Finally, the question: What recorse due I have if the General Contractor still refuses to pay?
1 Answer from Attorneys
Re: Waiver of Lien
Never sign a unconditional waiver unless you have actually recieved payment. If you are waiting on payment, you might sign a "conditional waiver" - which waives lien rights conditioned on actual payment.
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