Lien Waivers and Mechanics Liens

What is a lien waiver and do I need one?

A lien waiver is a document where a contractor or supplier waives their right to file a mechanics lien for a specific payment, and many customers or GCs require one before releasing payment.

Lien waivers are common on both residential and commercial projects as a condition of payment, especially from general contractors, lenders, or title companies who want assurance that subcontractors won't later file a lien for work already paid. There are different types (conditional and unconditional, progress and final), and using the wrong one at the wrong time can waive rights you didn't intend to give up.

Because lien waivers are legal documents with real consequences if signed incorrectly, have a construction attorney review your waiver forms and process, particularly the first time you use them or if a project's payment terms are unusual.

BCTM does not generate or file legal lien waivers; it can export your invoice and payment history, which you or your attorney may use as supporting documentation alongside a properly prepared waiver.

How do I file a mechanics lien?

Filing a mechanics lien requires following your state's specific legal process and deadlines, so this should be handled by a construction attorney or a specialized lien-filing service rather than done informally.

Mechanics lien filing is a formal legal process that varies substantially by state, including:

• Required preliminary notices before you're even eligible to file
• Strict filing deadlines (ranging from 60 days to 12 months depending on the state)
• Specific document formatting and recording requirements with the county or relevant authority
• Follow-on enforcement deadlines if the lien isn't paid

Given that roughly 28% of lien claims are dismissed on procedural grounds, often due to missed deadlines or errors, this is not a process to handle without professional guidance. Contact a construction attorney or a specialized lien-filing service like Levelset for your specific state's process.

BCTM does not file mechanics liens. It can export your invoice, estimate, and payment history to support a lien claim prepared by an attorney or lien-filing service.

How long do I have to file a lien after finishing a job?

Lien filing deadlines range from about 60 days in Ohio to 12 months in Louisiana depending on the state, so you must confirm your specific state's deadline and trigger event before relying on any general range.

The deadline to file a mechanics lien is entirely state-specific, and states also differ on what event starts the clock — last day of work, project completion, or a recorded Notice of Completion. General figures:

(Source: Subcontractor Audit — Lien Deadline by State Guide; Levelset — Deadlines for Construction Notices & Mechanics Liens in All 50 States)

Missing the deadline is one of the most common reasons lien claims get thrown out, so verify your exact state's rule with an attorney well before the general range above would run out.

What's a conditional vs. unconditional lien waiver?

A conditional lien waiver only takes effect once payment actually clears, while an unconditional lien waiver waives lien rights immediately upon signing, regardless of whether payment has been received yet.

Signing an unconditional waiver before payment has actually cleared can leave you without lien rights if the check bounces or the payment is reversed. Because the consequences of using the wrong type in the wrong situation can be significant, have a construction attorney review your waiver practices.

Do I need to send a preliminary notice before I can file a lien?

In many states yes, a preliminary notice is required within a set window after starting work to preserve your right to file a lien later, but the requirement and timing vary significantly by state.

A preliminary notice (sometimes called a "notice to owner" or similar) is a formal heads-up, often sent early in a project, that a contractor or supplier may have lien rights if unpaid. Key points:

• Some states require it for all contractors; others only require it for subcontractors or suppliers without a direct contract with the owner
• Missing the notice deadline in a state that requires one can eliminate your lien rights entirely, regardless of whether you were actually paid
• Timing windows are typically short — often within 20–30 days of starting work in states that require it

Because this requirement is state-specific and missing it can forfeit lien rights, confirm your state's rule with a construction attorney or lien-filing service before work begins, not after a payment dispute arises.

Can unpaid invoices in my software help prove a lien claim?

Yes — a clear, dated record of invoices, estimates, and payment history can serve as supporting documentation for a lien claim, though the lien filing itself still needs to follow your state's formal legal process.

A lien claim generally needs to show what work was performed, what was billed, and what remains unpaid. Having organized documentation makes this much easier to assemble:

• Original estimate/contract showing agreed scope and price
• Itemized invoices showing what was billed and when
• Payment history showing what has (and hasn't) been received
• Any change orders documenting scope changes

While this documentation supports a lien claim, it doesn't substitute for the formal filing requirements — notices, deadlines, and proper lien documents — which a construction attorney or lien-filing service should handle.

BCTM keeps a linked record of estimates, invoices, change orders, and payment history per job, which you can export as documentation to support a lien claim prepared by an attorney or lien-filing service.