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Does a GC Unconditional lien waiver protect against Unpaid Subs Filing a lien? Must GC provide if asked?

MichiganLien Waivers

This is a residential project addition in Michigan. We are at final payment with the GC ($5175 remaining). The GC states he will provide a waiver of lien (he did not specifically state Unconditional Lean Waiver) and that all subcontractors have been paid. However, we (homeowner) have discovered some of the subcontractors have not yet been paid in full by the GC (know of 2, not sure if more). Does the GC Lean Waiver (or unconditional Leon waiver) protect the homeowner from one of these subcontractors Issuing a lien against our property? We requested copies of the sub lien waivers from the GC. The GC states that supplying those are not in the contract, and that he did not get lien waivers from everyone. He also states that it will cost the homeowner $100 per waiver if he provides them. What is the GC Legally liable to provide If requested and can he really charge the homeowner?

1 reply

May 4, 2021

Ask the GC for his Sworn Statement. By law, the GC must include all subcontractors in the Sworn Statement. Also demand that the GC provide a Full and Unconditional Waiver from every subcontractor on the Sworn Statement.

Only pay for the contractors who have signed unconditional waivers of lien. No contractor has the authority to "waive" some other contractor's lien rights. Get the waiver from every sub, and the GC, before you pay in full.

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