Using Lien Waivers When Hiring Sub-Contractors

Lien Waivers in Home Improvements

This is an important lesson I learned early on when taking on home improvements and choosing a contractor to go with when getting started on that remodeling project. Here are a few things to keep in mind. When you hire a home remodeling General Contractor he is responsible overseeing your entire project from beginning to end. Usually, he will “hire out” some if not all of the different aspects needed to complete your job to subcontractors such as: plumbing, hvac, electrical, painting, garage installation, etc. In my experience, most of the homes remodeling general contractors that I have hired were either carpenters and/or construction management specialists.

During a major overhead garage door home improvements or repairs there can be many adjustments made some that will require workforce and budget tightening. I have learned that a good GC is a very good manager. The general contractor has to be proficient in managing the work site materials, the labor (sub-contractors), finances as well as the local government permit and home construction inspection process.

I have had my share of residential construction general contractors mismanage some of my home improvements projects even when I have done I that I can to make the job as fool proof as possible by doing most of the management myself when it came to the local government and work site materials (which was a nightmare). The area of the sub-contractor was a complete “blind spot” to me at that time. I mean…I hired the general contractor because he was a specialist in construction and had been in construction for many years. During those years there should have been some solid working relationships forged with other contractors one would assume.

Specifically, with commercial service sub-contractors…in my garage door opener installation and remodel the sub-contractors had gone weeks without getting paid and eventually put a lien on my property because the general contractor hire them improperly and later fired them without completely paying them for their share of work as the sub-contractors alleged.

This lien removal had to be arbitrated by a third party and the whole process took many months to perform steam carpet cleaning and repair even when they had been offered payment from me directly. This all could have be avoided if myself or the general contractor would have had the proper lien waiver clause in his agreement to the sub-contractors that all matters and disputes are between the general contractor and the “subs”. If you don't have a lien waiver form or clause in your contracts when completing your home improvements you may be looking for trouble in your next project.

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