Thousands of lien waivers are executed nationwide everyday, and too many sign these documents without truly understanding the complex language that lies within.
New Orleans, LA (PRWEB) December 31, 2013
In the construction industry, subcontractors and suppliers are approached frequently with requests to sign lien waivers. These documents are often unregulated and abused, and as reported by zlien, mistakes can cost companies thousands or millions of dollars.
On the heels of launching a web-based lien waiver management module, zlien this month published an "Ultimate Guide to Lien Waivers" to educate companies on this document.
Scott Wolfe, a leading expert in construction credit management and lien compliance measures for subcontractors and material suppliers revealed, “Thousands of lien waivers are executed nationwide everyday, and too many sign these documents without truly understanding the complex language that lies within. Unfortunately, many developers, general contractors, and lenders use the lien waiver document to take advantage of subs and suppliers, and to gain unfair leverage."
As proof, Wolfe points to recent cases decided in Texas and Massachusetts where contractors were burned out of millions of dollars not because the amounts were unearned, but simply because lien waiver documents were unintentionally signed saying the money was received or waived.
"The courts have to balance the waiving party's rights with the owner or lender's honest reliance on these waiver documents," explains Wolfe. "The result is that these documents are usually enforced by their exact terms, regardless of whether its unfair. Since contractors and suppliers have no way to manage these documents or understand the complex provisions, they are often unfair if enforced."
The "Ultimate Guide to Lien Waivers" published by zlien addresses every aspect of the lien waiver instrument and its process, including:
- Definition of the Lien Waiver
- The 4 General Types of Lien Waivers
- States that Do and Do Not Strictly Regulate Lien Waivers
- How to Review a Lien Waiver Document
- The Way Courts Interpret Waiver Documents, And How It Can Cost Companies
- Creating Lien Waiver Procedures
- Tools Available To Help Companies Manage Lien Waivers
zlien's publishes a lien waiver management tool for contractors and suppliers, and provides resources to educate credit and finance professionals about the entire mechanics lien and bond claim process.
“Many legal cases and situations turn on the text of a mechanics lien waiver, and lien waiver text varies so dramatically from party to party” says Nate Budde, Chief Legal Officer for zlien, about the company's Lien Waiver management module. “We committed ourselves to building a technological solution to this problem for subcontractors and suppliers. We’re not only going to save them time and headaches, we’re going to mitigate the legal risk associated with waivers."
Read Ultimate Guide to Lien Waivers on zlien's Lien and Credit Journal.
zlien provides software and services to help building supply and construction companies reduce credit risk, and control receivables, through the management of mechanics lien and bond claim compliance. Founded by experienced construction attorneys, zlien is the leading publisher of mechanics lien and bond claim resources and analysis, and has led the industry in innovating credit risk management solutions by utilizing the lien and bond claim laws. Learn more about zlien at http://www.zlien.com/