ASA’s new white paper, Mastering Negotiations on Mechanics Liens, recommends that construction subcontractors and suppliers become thoroughly familiar with the lien laws of the states in which they operate. This includes procedures for designated notices, filing methods and timing, priorities of claims, etc. One source for this information is the Foundation of ASA’s Lien and Bond Claims in the 50 States. ASA’s new white paper also provides guidance to subcontractors on prospective lien waivers. ASA recommends that a subcontractor not sign a subcontract on lien waiver forms that could preclude or diminish any lien rights prior to the receipt of payment in full for the work described in a lien release or waiver. The white paper suggests that a subcontractor in a discussion with a prime contractor can maintain:
“Your subcontract says that I’m waiving my lien rights in advance of any payments. I can agree to partial waivers for the amounts I’ve been paid, but I can’t give an advance waiver. I need to protect my interests, just as you protect your interests with the owner.”
The white paper is available under “Contracts & Project Management” in the members only area of the ASA Web site by logging-in at “LogIn/Access Member Resources.