There are two basic types of lien waiver provisions which may by presented in a construction contract. The first and most onerous is the “no liens” contract. This type of contract waives the contractor’s right to file a mechanic’s lien. It is undetermined whether a lien waiver of this type could be construed against a party lacking privity with the contract purporting to waive these rights.

The second is a partial lien waiver, executed at the time partial payment is made. This is common practice in construction trades as the Code specifically provides that payment to the contractor by the owner is not a defense to any subcontractor, laborer or materialman’s lien.

 

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