| Whenever you hire a general contractor who will | | | | signed lien waver from each worker, the |
| be using subcontractors to complete individual | | | | homeowner remains responsible for those |
| aspects of a remodeling project, it's important to | | | | payments, even if they'd already paid the general |
| protect yourself from future inability by insisting | | | | contractor for the services. |
| that everyone sign a lien waver before any | | | | Lien wavers protect homeowners from double |
| payments are made. | | | | paying on a specific job by ensuring that all parties |
| Avoid serious legal trouble following a major home | | | | understand that the general contractor will be |
| renovation by making sure you have a lien waver | | | | handling all subcontracting payments. |
| signed by each and every sub-contractor hired to | | | | What is important for a lien waver to include? |
| work on your home before the final payment is | | | | -The homeowner's name. |
| made. Even contractors who work for just a few | | | | -The contractor's full name, address and |
| hours need to sign a waver. | | | | telephone number. |
| Few homeowners understand that even if the | | | | -A detailed description of the work including the |
| general contractor has been paid in full for all | | | | final state of the house at the completion of the |
| services (and a receipt signed), subcontractors | | | | job, as well as a listing of what materials should |
| can still place a lien on their property if they don't | | | | be removed from the premises. |
| receive payment from the general contractor | | | | -The status of the work. |
| who ultimately chose and hired them. Lien wavers | | | | -Signed and dated. Be sure to have the |
| take payment responsibility from the homeowner | | | | contractor print and sign his name on two copies |
| and put it back on the general contractor. | | | | (one for him and one for you). Date every one! |
| It's considered normal practice for the main | | | | -A witness signature (optional, but encouraged). |
| contractor to assume responsibility for hiring all | | | | It may seem like a bit of a hassle to make sure |
| subcontractors, and paying them from the fee | | | | lien wavers are signed by every single |
| the charges the homeowner. That's why | | | | subcontractor who steps into your house during a |
| homeowners hire general contractors in the first | | | | large-scale project. But, not making sure that |
| place. Problems arise, however, if the general | | | | everyone releases you from further payment |
| contractor fails to pay his subcontractors. Which, | | | | once the job is completed, is an easy way to |
| by the way, happens all of the time. Without a | | | | safeguard you from further financial responsibility. |