We are a wholesale company located in GA and supplied material to our customer who now owes us money for the material. He apparently was contracted to do a job in TN and the contractor/owner is out of Illinois and he is now asking our company to sign the below Illinois lien waiver. We do not feel comfortable doing so but, he is telling us it is needed in order for us to get paid and that the company that contracted him is going to be paying us with a check made payable to us and to his company. Please tell me i am correct in NOT signing this. MATERIAL WAIVER OF LIEN TO DATE TO WHOM IT MAY CONCERN: WHEREAS the undersigned has been employed by_______________________________________________________ To furnish For the premises known as Of which is the owner. THE undersigned, for and in consideration of ($ ) Dollars, and other good and valuable consideration, the receipt whereof is hereby acknowledged , do(es) hereby waive and release any and all lien or claim of, or right to, lien, under the statutes of the State of Illinois, relating to mechanics’ liens, with respect to and on said above-described premises, and the improvements thereon, and on the material, fixtures, apparatus or machinery furnished, and on the moneys, funds or other considerations due or to become due from the owner, on account of all labor services, material, fixtures, apparatus or machinery, furnished to this date by the undersigned for the above-described premises, including extras.* DATE COMPANY NAME ADDRESS SIGNATURE AND TITLE NOTARY: * EXTRAS INCLUDE BUT ARE NOT LIMITED TO CHANGE ORDERS, BOTH ORAL AND WRITTEN, TO THE CONTRACT.
You ask if you should sign a Materialman's Lien Waiver before getting paid for the materials that are the subject of the waiver.
First answer is that you already know not to sign something that
+is not true when signed; and would
+prevent you from enforcing your rights
Good for you.
Second answer is that, believe it or not, this is common practice on Illinois projects. But, if everyone else jumped off a cliff, would you?
Since the parties are so far flung, making it hard to enforce your rights accross state lines, etc. I recommend finding a more immediate and simultaneous way to ensure that you won't get taken after signing this waiver. Ask your customer to put the money in an escrow account with a neutral party like a title company or Attorney obligated to turn over the funds when you turn in the waiver. That would be the ideal solution.
I hope this information was helpful. Best of luck!