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Whether you鈥檙e a general contractor (GC), subcontractor, or property owner, understanding Delaware lien waivers is crucial. These essential documents function as receipts acknowledging payment up to a specific amount, thereby waiving the party鈥檚 right to file a lien against the property for that amount. While the concept is straightforward, the practical application of lien waivers can be complex.
Several types of lien waivers exist, each requiring submission at specific times during a project. (For a deeper dive into lien waiver basics, refer to The Ultimate Guide to Construction Lien Waivers for Subcontractors.) Moreover, lien waiver requirements vary by state, with each jurisdiction setting its own rules regarding valid forms, contents, and enforcement.聽
Understanding these nuanced requirements is important for subcontractors to maintain compliance, prevent payment disputes, and protect their financial interests. So grab your hard hat, and let鈥檚 dive into the world of Delaware lien waivers!
(For more general information on lien waivers, check out this on-demand webinar: End the Whack-a-Mole: Lien Waiver Best Practice for Subs.)
Even though Delaware is one of 38 states that doesn鈥檛 regulate its lien waivers with statutory or specific forms, this doesn鈥檛 mean there aren鈥檛 rules to follow to ensure compliance and general best practices. In this state, there are several guidelines to pay attention to:聽
- Parties can include their own language in the lien waiver, so it鈥檚 important to review the lien waiver form and contract in full. Request the removal of any clauses that attempt to nullify your lien rights.
- prohibits waiving lien rights in the contract, either before work is completed or payment is granted. This offers substantial protection to subs, helping construction teams avoid costly payment delays and issues.
- Lien waivers in Delaware must only be exchanged 鈥渟imultaneously with or after payment for the labor performed or the materials supplied has been made,鈥� meaning lien waivers can only be exchanged pursuant to payment or after payment has been granted. Both conditional and unconditional lien waivers are allowed.
- Lien waivers in Delaware are only valid if there is a clear intention to waive lien rights.
Delaware doesn鈥檛 provide a specific or statutory form for lien waivers.
As long as there is a clear intention to waive lien rights, both conditional and unconditional lien waivers are accepted in Delaware.
Notarization is not required for Delaware lien waivers (unless the client requests it).
To be considered valid in Delaware, a lien waiver must:聽
- be in writing聽
- be signed by the waiving party
- clearly state the amount being waived and the property to which it applies
- communicate an intention to waive lien rights
expressly prohibits waiving lien rights in the contract.
In Delaware, advance lien waivers are not allowed. Waivers can be exchanged pursuant to payment, however, and can be executed with payment applications or after payment is received.
Completing Lien Waivers in Siteline
- Create, monitor, and track all your lien waivers in one place.
- Automatically fill out and send the right waiver at the right time.
- Request lower-tier lien waivers from all your sub-tier contractors, vendors, and suppliers鈥攊ndividually or in bulk.
- Securely collect e-signatures, with automatic reminders for any unsigned waivers.
- Package and submit signed waivers to your GCs directly within Siteline.
Delaware doesn鈥檛 regulate lien waivers with specific or statutory forms. That鈥檚 why it鈥檚 important to review every contractual clause to make sure project-specific requirements are met.
Delaware lien waivers are not regulated with a specific or statutory form. Lien waivers in Delaware are considered valid when:
- They clearly state the amount being waived and the property to which they apply,聽
- There is a definitive intention to waive lien rights, and
- They are signed by the party waiving their lien rights.
In Delaware, advance lien waivers, or waivers that nullify lien rights in the contract/before a construction job begins, are strictly prohibited, along with waiving lien rights prior to payment. That being said, a written waiver of the right to file a mechanic鈥檚 lien pursuant to payment for the labor or materials furnished is allowed, along with lien subordination.聽
Delaware lien waivers can be exchanged with payment applications (conditional lien waivers) and upon receipt of payment (unconditional lien waivers).
If you鈥檙e wondering which lien waivers to use and when, check out this comprehensive guide.
Project-specific lien waiver provisions can be added to the contract; however, waiving lien rights in the contract or prior to payment. (Remember, this doesn鈥檛 include a written waiver of the right to file a mechanic鈥檚 lien pursuant to payment for the labor or materials furnished or lien subordination agreements.)
Delaware doesn鈥檛 regulate lien waivers with a specific or statutory form. That means it鈥檚 up to you to review the lien waiver and corresponding job contract in full and request the removal of clauses that are unclear or unsupportive to your work.
prohibit waiving lien rights in the contract or before payment, providing an initial sense of protection for subs. If you are involved in a dispute over a Delaware lien waiver that cannot be resolved directly, consider consulting with a construction law attorney familiar with Delaware lien laws.
Even though Delaware lien waivers are mostly unregulated, it鈥檚 important to familiarize yourself with the necessary requirements to ensure compliance. Here are some resources to start with:
Automate the process with Siteline. Contractors use our lien waiver tool to digitize all of their lien waiver forms (primary and vendor), send waiver requests to lower-tier contractors and vendors, collect e-signatures, and submit completed waivers to their clients鈥攚ithout ever leaving the system. Siteline even provides centralized tracking to help contractors monitor vendor waiver statuses to see who鈥檚 received the form, who鈥檚 opened it, and who has (or hasn鈥檛) signed. This means contractors can collect waivers faster while eliminating payment delays caused by compliance holds.
Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. We recommend you consult a qualified attorney for advice specific to your situation.