How should a contractor protect its lien rights in contracts and in waivers?
Make sure a lien waiver is contingent on payment, either partial or final. Only waive liens through the date of the invoice, not through the date of the payment. Look for no lien clauses in your contract, and in the contract with the owner, if that contract is incorporated by reference. A no lien clause in the contract with the owner may be incorporated into a lower tier contract, if there is incorporation language in the lower tier contract. Such incorporation language is usually enforced.
