For most contractors, getting paid depends on paperwork arriving complete and on time. A pay application missing a waiver, or a waiver signed too early, costs either time or rights. A simple, consistent workflow prevents both.
Know the requirements for each job
At the start of every job, record:
- The pay application format, such as AIA G702 and G703 or the owner’s own form.
- The submission deadline each month and who reviews it.
- Which lien waiver forms are required. Several states prescribe statutory forms that must be used exactly.
- Who must provide waivers to whom, such as your firm to the GC, and your subcontractors and suppliers to you.
- Supporting documents, such as certified payroll, insurance certificates, or updated schedules.
Understand the four waivers
Most lien waivers fall into four types:
| Progress payment | Final payment | |
|---|---|---|
| Conditional | Effective when this progress payment clears | Effective when final payment clears |
| Unconditional | Effective immediately for this progress payment | Effective immediately for final payment |
The working rule is to send conditional waivers with the pay application and unconditional waivers only after the funds have actually cleared. An unconditional waiver signed before payment can give up lien rights for money you never received.
Run a monthly cycle
- A few days before the deadline, gather the schedule of values, work completed, stored materials, and approved change orders.
- Prepare the pay application and conditional waivers.
- Collect conditional waivers from your subcontractors and suppliers for the same period.
- Submit the package with supporting documents.
- Track approval and payment.
- When payment clears, issue unconditional waivers and collect them from your subs and suppliers before releasing their payments.
Track everything in one place
A simple tracking sheet per job, with one row per payment period and columns for each required waiver and its status, prevents most problems. Our lien waiver tracking checklist lists what to track.
Let software do the assembly
Most of the time in this process goes into finding invoices, filling in forms, and writing cover emails. IVOKER can find the relevant invoices in connected files, draft waivers in your approved format, and prepare the email to the general contractor. The project manager reviews and approves before anything is sent. The legal choices, such as which form and when to sign it, stay with your team and counsel.
Written by the Syntonyl team. This article is general information, not legal, tax, or financial advice.