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Whether you鈥檙e a general contractor (GC), subcontractor, or property owner, understanding Georgia 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 Georgia 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.)
Lien waivers in Georgia are highly regulated鈥攎eaning it鈥檚 important to follow all the rules outlined within so your lien waiver is valid and enforceable. First thing to know: Georgia lien waivers must match the forms provided by state law 鈥渟ubstantially鈥� for both interim payments, or progress payments, and final payments.聽
Lien waivers in Georgia must include all required fields, and then be 鈥済iven under hand and seal,鈥� or dated, signed, and addressed by a witness. (The good news: If mistakes are made when filling out these complex forms, as long as 鈥渢he subject matter of said release may reasonably be determined,鈥� the form won鈥檛 be invalidated by state law.)
Here are some other key details to keep in mind when handling Georgia lien waivers:
- Georgia lien waivers are by nature conditional, meaning payment must be granted before lien rights can be waived. However, if subcontractors are not paid within 90 days and do not submit an Affidavit of Nonpayment, the waiver becomes unconditional, which can lead to payment delays and legal issues.
- If you need to submit an , it must:some text
- Follow the format within state statutes (see section G) and include all required fields
- Be notarized
- Be sent within seven days by registered or certified mail or statutory overnight delivery to the property owner or company address/registered agent鈥檚 address on file if they are an entity with the Secretary of State鈥檚 Corporations Division
- Be filed with the Georgia county鈥檚 Clerk of the Superior Court
- Advance waivers, or waivers that nullify lien rights before work starts, are not allowed in Georgia.
- Lien waivers and releases are deemed 鈥渆ffective鈥� when one of the following happens:some text
- Receipt of payment as outlined in the waiver and release
- A separate written acknowledgment by contractors noting payment in full, otherwise known as an Affidavit of Payment
- 90 days pass from when the lien waiver is executed (unless an Affidavit of Nonpayment is filled out, sent, and filed)
Georgia mandates for progress payments and final payments.
Georgia lien waivers are conditional for up to 90 days. After this point, they become an unconditional lien waiver unless an (see section G) is filed within 90 days.
Lien waivers in Georgia must be 鈥済iven under hand and seal鈥� and dated, signed, and addressed by a witness. If an Affidavit of Nonpayment is filed, this has to be notarized for validity.
Lien waivers in Georgia are valid when they:
- follow the exact format outlined by ,
- are set in at least 12-point font without boldface capital letters, and
- are 鈥済iven under hand and seal鈥� and signed, dated, and addressed by a witness.
Per , lien rights cannot be waived 鈥渋n advance of furnishing labor, services, or materials.鈥�
The standard operation for Georgia lien waivers includes payment within 90 days of exchange. After 90 days, and if an Affidavit of Nonpayment is not filed, the lien waiver becomes unconditional, and lien rights are consequentially waived prior to payment.
Completing Lien Waivers in Siteline
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Yes, Georgia lien waivers are only valid if parties use specific, statutory forms. There are : 鈥渨aiver and release of lien and payment bond rights upon interim payment鈥� (or progress payments) and 鈥渨aiver and release of lien and payment bond rights upon final payment.鈥�
If you want to represent any project-specific requirements, do so in the corresponding job contract. The lien waiver form must match Georgia鈥檚 outlined forms 鈥渟ubstantially鈥� to be enforceable.
Georgia lien waivers are governed by . Each must be met for the lien waiver to be valid and enforceable:
- Lien waivers must follow the form(s) outlined in state statutes. Required elements include, but are not limited to: some text
- County name of where the job is being performed
- Name of contractor
- Materials/labor description
- Title of project or building
- Name of owner
- Payment amount
- Additional project details
- A required notice stating you have waived lien rights and claims
- Lien waivers in Georgia should be typed in at least 12-point font without boldface capital letters
- Georgia lien waivers must be 鈥済iven under hand and seal鈥� and signed, dated, and addressed by a witness
Georgia lien waivers cannot be exchanged before a project begins, as lien rights cannot be waived in the contract.
As long as work has been furnished, lien waivers can be exchanged for either 鈥渋nterim鈥� or progress payments at specific project milestones, or final payments at the conclusion of the project:
- A waiver and release of lien and payment bond rights upon interim payment (conditional up to 90 days) indicates that you will waive your lien rights for that specific portion of the project after the general contractor pays the noted amount. This should be exchanged when you submit a pay app for a progress payment.
- A waiver and release of lien and payment bond rights upon final payment (conditional up to 90 days) states that you will waive your lien rights for the entire project, only if the general contractor pays the remaining balance in full. Submit this waiver with the final pay app to signify a project has ended.
(If you鈥檙e wondering which type of lien waivers to use for your construction project, review this comprehensive guide.)
Timing especially comes into play 90 days after the lien waiver is signed. Georgia lien waivers are conditional for up to 90 days, meaning payment must be received before lien rights are waived. After 90 days, the lien waiver becomes unconditional. To continue protecting their lien rights, claimants must file an Affidavit of Nonpayment within 90 days, in the county where work is being performed.
The Affidavit of Nonpayment should 鈥渟ubstantially鈥� follow the form . Once completed, this form needs to be notarized, and the claimant needs to send a copy 鈥渂y registered or certified mail or statutory overnight delivery鈥� to the property owner or, if they are an entity on file with the Secretary of State鈥檚 Corporations Division, to the company address or registered agent鈥檚 address on file with the Secretary of State within seven days. It must also be filed with the Georgia county鈥檚 Clerk of the Superior Court.
Lien waiver provisions should not be added to Georgia lien waivers under any circumstances. Anything that deviates from could deem the lien waiver void and nullify your lien rights.
With that being said, Georgia statutes do offer protections to subs, as lien rights cannot be waived in the contract. If you have project-specific requirements that you鈥檇 like to add, choose to do so in the overarching job contract.
When operating a construction business in Georgia, subcontractors are often given an initial sense of protection in disputes as the language in the state-outlined lien waiver forms is clear-cut and easily interpreted by the court of law. At the same time, Georgia courts vs. subs.
It鈥檚 up to contractors to follow the state鈥檚 rules to retain their lien rights. Lien waiver forms are conditional for up to 90 days; if parties are not paid and do not submit an Affidavit of Nonpayment during this window, the lien waiver becomes unconditional. This can lead to payment delays or costly litigation.
If there鈥檚 a dispute over the lien waiver, carefully review the lien waiver form and corresponding contract. Submit an per the outlined statutes within 90 days of nonpayment. At that point, resolution could be handled more cleanly in a court of law. If the dispute cannot be handled directly in this manner, consider consulting with a construction law attorney who is familiar with Georgia lien laws.
In Georgia, it鈥檚 important to stay knowledgeable about all lien waiver requirements, so you protect your lien rights at every stage of the job. Start by reviewing the following resources:
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.