Contract Negotiation Tips: No Lien Clauses and Specific Lien Waiver Forms
You want to be sure that you are paid for your work on ALL of your jobs. Mechanic’s Liens and Bond Claims or even the RIGHT to file a Mechanic’s Lien or Bond Claim can make sure that you do get paid, but Lien waivers and Pay-if-Paid clauses can get in your way.
Questions that you need to know about your contract are:
Where do I find Lien Waivers?
What is a No Lien Clause and is it enforceable in Ohio if I sign it even before I even start work?
My contract doesn’t have a No Lien Clause; can they still require me to waive my lien rights before I am paid?
I am forced to sign lien waivers all the time, BEFORE I am paid. If they don’t pay me like they promised, can they use it later to keep me from filing a lien, a bond claim or suing them for payment?
Are there different lien waivers that I should use at different times?
If I have been paid?
If they only promised payment?
If they paid me with a check, but I am not sure that it won’t bounce?
What should I do to assure that I am treated fairly on the project and get paid for my work?
THE ANSWERS ARE:
A document that is enforceable in Ohio, but illegal in some states and yes.
Yes, Yes, but fortunately, probably not.
and, Watch this video to hear the full answers and make sure that your invoices will be paid on time.
NOTE: This video is not currently enabled with closed captioning.