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Are lien releases required from suppliers and subcontractors when it is over a $1,000?

WashingtonLien Releases

We hired a roofing contractor to install insulation, replace new plywood sheathing and new asphalt shingles. There were the following six total suppliers and subcontractors on the project: a) Insulation and plywood sheathing supplier b) Shingle Supplier c) Gutter Contractor d) Electrician (since they accidently cut some wires in the attic) e) Dumpster Service f) Portable Toilet Service The roofing contractor is only providing me with 4 lien releases (a, b, c, and d). The contractor is saying that in WA State only vendors/contractors that provide more that $1000 in goods or services need to provide a lien release. Is this true? We have had the dumpster sitting on our driveway for over 1.5 month and they have had to switch out the dumpster 3 times so I'm worried that this might be a huge bill. Also, with the portable toilet (honey bucket), it has been sitting on our driveway for over 1.5 months as well. I have called WA State L&I and they suggest I get the roofing contractor to provide signed lien release on all supplier and subcontractors. When I asked the roofer a second time, he again stated that only vendors and suppliers over $1,000 is required to provide lien release. What do I do now to protect myself? Is he correct? Thanks!

2 replies

Jan 31, 2020

There is no specific statutory exemption from providing lien waivers for parties who furnish less than $1,000 worth of labor or material to a specific job. In fact, Washington does not exercise much statutory control over lien waivers at all, there is no specific form requirements or timing requirements that must be met. Since there is no specific prohibition on filing a lien for amounts less than $1,000 - there is no corresponding prohibition against obtaining lien waivers from participants who provide labor or material of that value or less. And, in fact, Washington law provides that "Upon payment and acceptance of the amount due to the lien claimant and upon demand of the owner or the person making payment, the lien claimant shall immediately prepare and execute a release of all lien rights for which payment has been made, and deliver the release to the person making payment." There is a notice requirement for parties who contract directly with the property owner that does not apply to jobs of less than $1,000 - so that may be where the misunderstanding arises.

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