Updated: Tuesday, 05 Jun 2012, 7:29 AM CDT
Published : Tuesday, 05 Jun 2012, 7:22 AM CDT
Types of Contractors:
A nationwide Angie's List poll found:
· When asked what aspects of the hiring process or contract were important - 10 percent of the respondent said lien wavers.
What is a lien waver?
If a home improvement contractor fails to pay his employees or fails to pay for the building materials used in the project, a lien can be placed on your property and you, the property owner, can be held liable for the unpaid expenses if a lien waiver was not established.
· To avoid unexpected fees or liens, homeowners should consider always including a lien waiver or lien waiver clause in the project's contract. With a lien waiver, when the project is successfully completed, both parties sign off and state that the contract obligations have been met, including the general contractor making all necessary payments to materials suppliers, subcontractors or vendors.
· If the general contractor doesn't agree to sign off on the lien waiver, you can withhold payment until he or she has proved they've paid their suppliers or subcontractors.
· One of the most essential things to know about liens and lien releases is how they're enforced in your area. Although the general principle is the same for most areas, each state or municipality has different standards for the application of liens and their releases.
Angie's List Tips: Know your subcontractors