Lien Waiver

Lien waivers protect property owners from mechanics liens—legal claims against your property filed when contractors or suppliers aren't paid. When you pay your general contractor, they should pay subcontractors and suppliers. If they don't, unpaid parties can lien your property even though you paid the general contractor. Lien waivers provide proof that everyone in the payment chain was paid. Two types exist: conditional (effective when payment clears) and unconditional (effective immediately). Collect unconditional final waivers before releasing final payment.

Why They're Critical

Colorado mechanics lien laws are contractor-friendly. Unpaid subs can lien your property for work you already paid for—you could pay twice. Protect yourself: require lien waivers from the general contractor and all major subcontractors (electrician, plumber, HVAC, etc.) with each payment. Before final payment, obtain unconditional final lien waivers from everyone. If your contractor resists providing waivers, that's a major red flag suggesting payment problems with subs. Consider making joint checks to contractor and major subs to ensure payment.

Types of Lien Waivers

• Conditional Partial: Waives lien rights through a date once payment clears
• Unconditional Partial: Waives rights immediately through a date (use after payment clears)
• Conditional Final: Waives all remaining lien rights once final payment clears
• Unconditional Final: Waives all rights immediately (get before releasing final payment)
• Require waivers from: General contractor, all subcontractors, major suppliers
• Keep lien waivers in permanent property records