Turnover & closeout
Lien waiver
Also called: lien release, waiver of lien
A lien waiver is a document signed by a contractor, subcontractor, or supplier releasing their right to file a mechanic's lien against the property for work or materials, given in exchange for payment. Waivers come in conditional and unconditional forms and in partial and final versions, and collecting them down the chain is how an owner confirms no one below can still claim against the property. Lien rights and waiver requirements are governed by state law and the contract, so the specifics vary by jurisdiction.
Why it matters
An owner can pay the general contractor in full and still face a lien from an unpaid sub or supplier. Lien waivers are how the owner and lender confirm the payment actually flowed down and the property is clear. Final payment and retainage release commonly wait on collecting final waivers from everyone who could file.
How it shows up on site
Waivers are exchanged with each payment — conditional ones before payment clears, unconditional ones after — and tracked against every tier of subs and suppliers so none is missed. Final unconditional waivers are typically a required closeout deliverable before the last payment releases.
Common mistakes
Signing an unconditional waiver before the payment has actually cleared. Collecting waivers only from the top tier and missing a lower-tier supplier who can still lien. Treating the forms as interchangeable when conditional, unconditional, partial, and final each mean different things — and the governing rules are the jurisdiction's and the contract's call, not a matter of preference.
Checklists that put lien waiver to work
Free, field-ready checklists, each with the photo every item needs before it can be submitted.
Related terms
- Closeout packageThe compiled record proving the work was completed, inspected, and accepted, assembled to close out the contract.
- RetainageA portion of each payment the owner withholds until the work is complete and accepted, as leverage to finish.
- Final acceptanceThe owner's formal acknowledgment that the work is complete and accepted, closing out the contractor's obligations short of warranty.
- Project closeoutThe end-of-project phase that finishes the work, assembles the records, and settles the contract to formally close the job.
- Substantial completionThe milestone where the work is usable for its intended purpose, even with minor punch items still open.
- Certificate of occupancy (CO)The document the building department issues confirming a completed building is code-compliant and legal to occupy.
Knowing the term is step one. Proving it is the job.
RTI holds the submit button until every mandatory item is answered and the photos are attached, then chains the record so it can be proven untouched later.