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A final lien waiver is a legal document that serves as a formal release of a contractor’s or subcontractor’s rights to file a lien against a property owner or project after they’ve received full payment for their work. Its primary purpose is to provide assurance to the property owner, developer, and/or GC that no future claims or liens will be filed once the final payment has been made.

In the construction industry, subcontractors and material suppliers have the legal right to file a lien against a property if they have not been paid for their services or materials supplied. This lien acts as a security interest in the property, preventing the owner from selling or refinancing until the debt is settled. By signing a final lien waiver, the subcontractor or supplier acknowledges that they have received full payment and relinquishes the right to file a lien in the future.

For subcontracting businesses, obtaining final lien waivers from their lower-tier subcontractors and suppliers is crucial for these same reasons. It protects them from potential claims or liens that could arise after they’ve paid their lower-tier subcontractors in full. Failure to secure these lien waivers can expose subcontractors to legal and financial risks, as they may be held responsible for any unpaid debts owed to their lower-tier subcontractors or suppliers.

Overall, final lien waivers provide essential protection and peace of mind for all parties involved in a construction project, ensuring that all work has been satisfactorily compensated and preventing future disputes over payment.

Solutions like Siteline streamline the lien waiver process for subcontractors by:

• Automating collection from lower-tier subcontractors and suppliers;
• Providing a centralized view of lien waiver statuses across all projects; and
• Generating lien waivers (conditional or unconditional, progress or final) to submit to general contractors.

As such, Siteline helps enhance efficiency, mitigate risks, and enables subcontractors to focus on core operations while ensuring compliance and protecting against potential legal or financial complications that could arise from incomplete or missing lien waivers.

Request a demo of Siteline today to experience these benefits firsthand!

AIA® billing is a standardized payment application process for construction projects. Developed by the American Institute of Architects (AIA®), it uses specific forms—primarily the G-702® Application and Certificate for Payment and G-703® Continuation Sheet—to document and request progress payments throughout a project. These forms create a uniform system for contractors that shows exactly what work has been completed, what materials have been stored, and what payment is due during each billing period. They also require detailed information about contract values, change orders, and retainage amounts. AIA® has become the industry standard, especially for larger commercial projects and government contracts.

For subcontractors, understanding AIA® billing is essential since most large general contractors (GCs) require these forms or customized versions of them. While AIA® billing can initially seem complex, it provides important benefits like reducing payment disputes, creating clear documentation of work progress, and often resulting in faster payments. Mastering AIA® billing opens doors to working with larger GCs and bidding on more substantial projects. That’s why we created this comprehensive guide, filled with detailed information on completing AIA® billing forms and managing the payment application process.

Siteline simplifies the AIA® billing process by automating form creation and submission. Our system currently maintains 15,000 custom billing forms from more than 10,000 GCs, enabling subcontractors to generate perfect pay apps in minutes for fewer delays and faster, more predictable payments. Schedule a no-obligation demo to see how Siteline can help you streamline AIA® billing and reduce invoice aging by at least 30%.

Accrual accounting is a method of accounting that records financial events based on occurrences rather than on cash flow. In the context of the construction industry, this could include recognizing revenues and expenses tied to a specific project when they are earned or incurred, not when the money is actually received or paid out.For example, if a construction company orders materials for a project, under accrual accounting, the expense is recorded as soon as the order is made, regardless of when the actual payment is made. Similarly, if a customer is billed for a completed phase of the project, the revenue will be recorded even if the cash hasn't been received yet. This type of accounting provides a more accurate picture of a construction company's financial health by aligning income and expenses to the appropriate fiscal periods. It enables firms to match revenues with the corresponding costs, delivering a holistic view of a project’s profitability. However, it can also complicate cash flow management as there may be a time lag between recorded revenue and actual cash receipt.