What are Lien Waivers?

I was talking to my UPS deliveryman who had an addition put on his house 5 years ago.

The building contractor’s framer sent him a certified pre-lien notice in the mail so he call the contractor to find out why he had received this in the mail.

The contractor said to him that the building contractor’s lien waiver supercedes all lien weavers of the subcontractors.

Needles to say he had to pay the contractor and then he had to pay some of the contractors that the contractor did not pay.

The electrical contractor came over to his house a month and a 1/2 after he was done and asked him to sign a statement; the statement was a contract that was backdated 2 months earlier, because the building contract did not pay for work rendered. So the homeowner paid twice.

Concerning Lien Waivers: According to Minnesota law, Minnesota statute 514.011 must be included in all written construction contracts. The notice must be written in 10 point bold type and contain the precise language of the statute. The statute is as follows;
Statute 514.011 NOTICE

(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE CONTRIBUTIONS.
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE, OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY NOTICE.

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