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A Pay-When-Paid Clause refers to a contractual provision often used within the construction industry. This clause essentially stipulates that a contractor or a subcontractor is not obliged to pay their subcontractors or suppliers until they themselves receive payment from the project owner. It serves to manage the risk associated with the delay or failure of payment in the construction chain, allowing the contractor to pass on the financial risks to the subcontractors. Such a clause can have significant implications on cash flows and may affect the commercial viability of construction projects, particularly for smaller subcontractors. It's crucial for all parties involved to carefully negotiate these provisions.

Progress Billing is a method commonly used in the construction industry, where billing for a project is done at different stages as it progresses, rather than asking for full payment upfront or at the completion of the project. This type of billing is beneficial both for constructors and clients. For constructors, it helps maintain the cash flow required for the ongoing expense of materials and labor. For clients, it provides assurance that they are paying for the work only as it is being completed and allows them to budget effectively. Each invoice is usually based on the percentage of work completed, thus it is also known as percentage-of-completion billing method. Proper documentation, like progress reports or photos of the construction site, often accompany these invoices as a proof of progress.

A lien release in the construction industry is a legal document that removes a lien that has already been placed on a property, clearing the property from any debt or obligation related to construction work. The lien release proves that whoever filed the lien (general contractor, subcontractor, vendor, etc.) has been fully compensated for their work and waives their right to place a lien on the property in the future.

This is incredibly important for all parties involved in a construction project. For those who may have filed a lien, it ensures they receive their due payment and protects them from potential financial losses. For those who have had a lien filed against their property, it clears the title and allows for smooth project completion and transfer of ownership. Ultimately, a lien release provides a record of resolved financial obligations, contributing to greater trust and transparency among all stakeholders.

While Siteline doesn't handle the actual filing of a lien, it plays a crucial role in preventing the need for one in the first place. Our software helps subcontractors manage their billing workflow, including the collection and tracking of lien waivers. This ensures all necessary documentation is in order and payments are processed smoothly, minimizing the risk of non-payment and potential legal disputes. By streamlining the payment process, Siteline helps subcontractors get paid faster and avoid costly delays, ultimately contributing to a more efficient and secure construction project for everyone involved.