“Would you still adopt me if my name was ‘Waiver Exchange?'”
No matter how big the project, lien waivers can cause a headache for all parties if mismanaged. The time spent waiting on the lien waiver exchange process can add a significant number of unnecessary days to the already-too-long wait to get paid in construction. However, by utilizing technology to manage the entire lien rights process – including exchanging lien waivers – contractors can effectively know who’s on the project, know when to pay them, avoid hiccups from payment disputes, and get paid faster.
In the following article, we’ll discuss a few of the benefits construction companies can realize through the adoption of “back office” technology.
Lien Waiver Technology 1-2-3
Of course lien waiver forms must contain any necessary or statutory language, but it’s also a good idea to create, send, and save them them in a digital format, whether that’s a literal email inbox, internal CRM, accounting software, or another digital tool. This way when waiver requests come in, it will be easy to track unconditional or conditional requests with invoices to ensure payment filters down to the correct parties. You can also know when they’ve been signed and how much to pay.
When working with new contractors or existing business relationships, inform your subs of your plans to implement new, standardized forms or replies to lien waiver requests should come from now on. If you’re looking to streamline the exchange of payment on the job, having an internal or online repository for waivers can definitely ensure that manual errors are avoided and as a busy contractor or office manager, you can be more organized.
It’s likely that if you’re managing the project, you’re the recipient of preliminary notices or notices of intent from other contractors. Be open to collaboration with these parties, and understand that their payment is a priority on the job. By adopting and consistently applying the best practice of sending a notice and ensuring that risk is minimized, you can avoid surprise liens on a job or double payment.
Since all parties on a job are dealing with lien waivers as receipt of payment, a contractor or office manager can look to digitally transform the way a construction office works by reducing manually tracking waivers and focus on the entire job as a whole. Not only will that make your job easier, but you’ll also help your company get paid faster too.