Signing a Georgia lien waiver is typical for suppliers, subcontractors, laborers or any hired party contributing to a project–they are a normal part of the payment cycle in construction projects in the state. Hiring parties typically request lien waivers to manage the mechanics lien rights of those who contribute work or materials to a project.
In Georgia, when a lien waiver is signed, the claimant still retains their lien rights–up to 90 days after signing. If they do not receive payment, the claimant is required to record an Affidavit of Nonpayment in order to retain their lien rights. This was previously 60 days, but was changed in the changes to Georgia Lien Laws in 2021 O.C.G.A. § 44-14-366.
Georgia Lien Waiver Form Templates
Georgia’s waiver and release forms are statutory, meaning they include specifics required by law that need to be followed in order to be enforceable. Here are two lien waiver templates that reflect the changes in Georiga lien law.
Waiver and Release of Lien and Payment Bond Rights Upon Interim Payment
Georgia has two statutory forms for lien waivers. One is for interim or progress payments. And the other is the lien waiver and release for final payments. You need to use statutory format which includes the required information and statements that reflect Georgia lien laws. Georgia is very strict in enforcing these requirements.
Just in 2021, new changes were made to Georgia lien laws, as a result of disputes arising from nonstandard application of statutes and statutory forms.
Waiver and Release of Lien and Payment Bond Rights Upon Final Payment
Are Georgia Lien Waivers Conditional or Unconditional Waivers?
Georgia lien waivers start off as conditional waivers, but become unconditional by the 90th day after signing, unless an affidavit of nonpayment is recorded. This means the claimant loses their lien rights after 90 days of signing if they don’t record the Affidavit of Nonpayment with the county.
Hiring parties like general contractors and subcontractors often request these lien waivers as typical part of payment compliance. However, if the claimant is not careful, they can easily waive their lien rights if they sign a Georgia lien waiver and they don’t monitor payments.
If they have not been paid and fail to record an affidavit of nonpayment, then the claimant loses all their lien rights to the payment specified in the waiver they signed.
Note: Subcontractors, suppliers, laborers and any party down the chain that contributed labor, services, materials, and equipment directly for the improvement of a property is entitled to a lien in Georgia. If a Notice of Commencement was recorded and posted, they are required to send a Notice to Contractor to retain their lien and payment bond rights.
Further reading