All parties who operate on the site of a new project typically expect to receive compensation for services rendered or products provided. Construction companies in California who wish to protect their financial interests may have various options to consider when working with other parties on a project. One such option could involve lien waivers, but knowing when a similar path may be favorable might not always be such a simple concept.
In a lien waiver, one party might sign a document waiving its rights to file a lien on a specified amount after receiving payment for the amount from the other party involved. Experts indicate that in some cases, lien waivers could help protect the financial interests of all parties involved. For instance, such arrangements could help shield contractors from mechanics liens while keeping subcontractors from facing the threat of nonpayment.
Experts also indicate that lien waiver agreements can come in several forms, such as conditional and unconditional waivers. Each available option may carry its own set of terms and obligations and taking steps to fully understand one’s options may be vital to making informed choices. However, knowing what to expect from a lien waiver and knowing when to implement such measures may be two separate matters altogether.
Lien waivers are just one example of a tool that many construction companies might consider using when working on a new project. Those who are weighing their available options and wish to seek insight in choosing the best path for their situation might find it helpful to speak with attorney for guidance in navigating the process. An attorney can help a client better understand all his or her available options and provide insight in choosing the best path available regarding the future of his or her business.