As an experienced General Contractor in Minnesota, APPRO Development takes the necessary measures to protect their clients. One way a general contractor, such as APPRO Development, can protect the property owner of a construction project, is to collect lien waivers from the subcontractors and/or suppliers they hire on the project.
What is a Lien Waiver?
A lien waiver (also known as a Mechanic’s Lien Waiver) is a document that a general contractor, subcontractor or supplier signs upon receiving payment which waives their right to file a lien against the property.
When does a Lien get filed?
A general contractor, subcontractor or supplier can file a lien within a certain amount of time after their work has been completed and payment hasn’t been received. The timeframe varies depending on the laws of each state. In Minnesota, the general contractor, subcontractor or supplier must record a lien within 120 days after the last day of work was done or materials were supplied on the project.
Why are Lien Waivers Important?
Lien waivers are an important way of protecting the property owner from having a claim filed against the property. If a lien is filed the property owner does not own a clear title. This can become a problem if the property owner is working on permanent financing for the project. Also, some cities will not issue a Certificate of Occupancy on the project until you can prove that you have satisfied any liens that may have been filed. If liens on a property become an issue a contractor can take legal action and force the sale of the property to make sure they get paid.
As a result, APPRO Development collects lien waivers from each of their subcontractors and suppliers on each project to protect their client. APPRO Development has over 23 years of commercial building experience. Therefore, if you are looking for an experienced General Contractor in MN to help design & build your commercial project, please feel free to contact APPRO Development.