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Whether you鈥檙e a general contractor (GC), subcontractor, or property owner, understanding Louisiana 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 Louisiana lien waivers!
鈥�(For more general information on lien waivers, check out this on-demand webinar: End the Whack-a-Mole: Lien Waiver Best Practice for Subs.)
Louisiana is one of 38 states that doesn鈥檛 govern its lien waivers with specific or statutory forms. This means the content of the lien waiver and the contract that governs it can include various provisions. Louisiana state law doesn鈥檛 include any statutory provisions regarding waiving lien rights in the contract; to make sure you鈥檙e compensated fairly for your work and retain lien rights, review the contract thoroughly and request to remove any unsavory clauses.
Since Louisiana doesn鈥檛 regulate its lien waivers, this paves the way for potential confusion. To help clarify things, look to ; cases applying it have governed that a 鈥渨aiver鈥� in this state is defined as 鈥渁n existing right, a knowledge of its existence and an actual intention to relinquish it.鈥� Contracts should define lien rights for the waiving party and also acknowledge their intention to waive them for lien waivers to be valid.
Here鈥檚 what you need to know when handling Louisiana lien waivers:
- Waivers must clearly state the amount being waived and the property to which they apply. (Familiarize yourself with basic lien waiver contents here.)
- Louisiana has a variety of statutes in place to protect the rights of general contractors and subcontractors, including the and the . These statutes can provide a basic level of protection in case of a dispute.
Louisiana does not require a specific or statutory lien waiver form.
Both conditional and unconditional lien waivers are allowed in Louisiana.
Notarization is not required for Louisiana lien waivers (unless requested by the client).
To be considered valid in Louisiana, 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
Louisiana state law does not include any provision that prohibits waiving lien rights in the corresponding contract.
Louisiana statutes outline that once a claimant has the right to file their lien, they can waive lien rights. Lien waivers in Louisiana can be provided once work is completed but before payment has been granted.
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.
Louisiana doesn鈥檛 govern its lien waivers with specific or statutory forms. Review the contract in full and ensure all project-specific lien waiver requirements are represented.
Louisiana doesn鈥檛 have specific statutory requirements for lien waivers. However, the Louisiana Supreme Court as: 鈥淸w]aiver occurs when there is an existing right, a knowledge of its existence and an actual intention to relinquish it.鈥� This means both parties must acknowledge that one party has lien rights and plans to waive them before a lien waiver is deemed valid.
Lien waivers in Louisiana must:
- clearly state the amount being waived and the property to which they apply, and
- be signed by the party waiving their lien rights.
A corresponding contract should outline all other project-specific terms.
Based on that apply Louisiana law, advance lien waivers are not valid in Louisiana. This means that lien waivers should only be exchanged after work is performed, when parties have a legal right to file their lien. Lien waivers in Louisiana can be conditional (exchanged with payment applications) or unconditional (exchanged upon receipt of payment).
To understand the different types of lien waivers and when you should use them, check out this comprehensive guide.
Louisiana law does not include any statutory provisions that forbid parties to waive lien rights in the contract. If you encounter any provision attempting to waive your right to file a lien, we recommend negotiating for their removal as they could affect your leverage to get paid for the work you complete.
For lien waivers in Louisiana, the has determined that parties need to have rights to a lien and then purport to waive them. It鈥檚 also common practice in the state for contracts to include by ensuring everyone is paid for their work. Contracts that include this provision can add extra protection throughout the project.
If there鈥檚 a dispute, make sure to read through the lien waiver and contract carefully to ensure lien rights are asserted and there is an intention to waive them. If the dispute cannot be handled directly, we recommend consulting with a construction law attorney familiar with Louisiana lien laws.
Louisiana doesn鈥檛 provide specific lien waiver statutes, and navigating Louisiana lien waivers can be a complex process. We recommend reviewing a wide range of resources in the state for guidance on mechanic鈥檚 liens and more, so you can feel prepared when submitting lien waivers for your construction project:
- (see Part III: Claims of Subcontractors, Materialmen, and Laborers on Public Works)
- (part of the Louisiana Public Works Act)
- (covers residential projects)
- (part of the Louisiana Private Works Act; covers mechanic鈥檚 liens)
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.