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$ , Hereby Waives and Releases Its Lien and Right to Claim a Lien for Labor, Form

$ , Hereby Waives and Releases Its Lien and Right to Claim a Lien for Labor, Form

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Lien waivers are documents exchanged on construction projects to help keep the property free of mechanic's liens. They are exchanged all the time on projects large and small and are an important part of the payment process. You can think of lien waivers as the construction industry’s version of a receipt for payment.   Like a receipt at costco, it proves that payment is being exchanged for some work or materials, and works to limit potential lien liability.  Here’s an example of a lien waiver in action: A general contractor pays a subcontractor $50k for re-shingling a roof. The subcontractor then signs a waiver to give up lien rights on the fifty thousand dollar  amount they were paid. It’s as simple as that. Lien waivers protect everybody. In the example I just gave, the GC is protected from the threat of a mechanics lien for the work performed and paid for, and the subcontractor can safely waive lien rights since they've been paid. When lien waivers are exc

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