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Whether you鈥檙e a general contractor (GC), subcontractor, or property owner, understanding Massachusetts 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 Massachusetts 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.)
Massachusetts lien waivers can be tricky for all parties involved鈥攊t鈥檚 in your best interest to familiarize yourself with the rules. State law requires GCs to use a specific, statutory form. All other parties should align with what鈥檚 shared in to protect their lien rights.
It鈥檚 not legal to waive the lien rights of any party鈥攕ubcontractors included鈥攊n the contract in Massachusetts unless GCs follow the specific form outlined in both format and content and sign 鈥渦nder the penalties of perjury.鈥� If the lien waiver doesn鈥檛 align 鈥渟ubstantially,鈥� it will become void and unenforceable. Additionally, these state-outlined lien waivers must only be exchanged for progress payments, after work has been completed.
Here鈥檚 what you need to know when drafting Massachusetts lien waivers:
- Since the statutory form is only to be used by GCs, subcontractors and suppliers may lack the protections it provides. These parties should supply either partial or full waivers that feature many, if not all, of the required fields within the state-outlined form and demonstrate an intention to waive lien rights. Historically, Massachusetts courts .
- Both unconditional and conditional lien waivers are allowed in Massachusetts. With a conditional lien waiver, project stakeholders can exchange lien waivers at specific milestones or for one final payment with progress pay apps. An unconditional lien waiver is binding upon signing, whether or not parties are paid; only exchange them after payment occurs.聽
- Typically, disputes in Massachusetts are streamlined if GCs use the state-outlined form, as its language is unambiguous and legally sound in court.
Massachusetts provides to be used for progress payments (including the final payment) by GCs only. All other parties should supply their own partial and final lien waivers that closely align with the state-outlined forms.
Massachusetts lien waivers can be either conditional or unconditional.
While Massachusetts lien waivers do not need to be notarized, they must be 鈥渟igned under the penalties of perjury.鈥�
Valid lien waivers in Massachusetts must:聽
- be in writing聽
- be signed by the waiving party 鈥渦nder the penalties of perjury鈥�
- clearly state the amount being waived and the property to which they apply
- follow the outlined format as specified (GCs only)聽
- be used only for progress payments (GCs only)
Lien rights cannot be waived in the contract. However, GCs can partially waive or subordinate them with .
Technically, lien rights can be waived prior to payment if parties file an unconditional lien waiver. We recommend only exchanging this form after you鈥檝e been paid.
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.
GCs must follow a specific, statutory form for Massachusetts lien waivers. notes this 鈥減artial waiver and subordination of lien鈥� form must align 鈥渟ubstantially鈥� for both progress payments and final payments.
Here鈥檚 where it gets tricky; subs and suppliers need to provide their own lien waiver form in Massachusetts. We recommend aligning the format as closely as you can to the state-outlined form to protect your lien rights.
For GCs, Massachusetts lien waivers must follow guidelines spelled out in to be enforceable, including:
- Lien waivers in Massachusetts must align 鈥渟ubstantially鈥� with a format that includes, but isn鈥檛 limited to:some text
- Date
- County name
- Payment number
- Owner
- Contractor
- Retainage
- Current Amount Due
- The lien waiver must be 鈥渟igned under the penalties of perjury鈥�
Subcontractors and suppliers, on the other hand, are not to use the state-outlined form.聽
Their lien waivers are considered valid when:
- They clearly state the amount being waived and the property to which they apply, and
- They are signed by the party waiving their lien rights.
Advance lien waivers are not allowed in Massachusetts. This means that liens can only be waived for work completed up to a certain point. Per , GCs must waive their lien rights through 鈥減artial waivers and subordinations of liens鈥� to be valid.
That being said, Massachusetts lien waivers can be exchanged for progress payments and final payments based on the following four subtypes:
- A conditional waiver and release on progress payment indicates that you will waive your lien rights for that specific portion of the project after payment. This should be exchanged when you submit a pay app for a progress payment.
- An unconditional waiver and release on progress payment should ideally be exchanged after you receive payment for the specified amount, thus allowing you to waive your right to file a lien on this portion of the project. (If you exchange this waiver before being paid for a Massachusetts construction job, you release any leverage you have for securing payment, increasing your risk of non-payment.)
- A conditional waiver and release on final payment states that you will waive your lien rights for the entire project. Submit this waiver with the final pay app to signify a project has ended.
- Lastly, an unconditional waiver and release on final payment should be exchanged after receiving the final payment, including retention and fees. This waives all of your lien rights on the project.
If you鈥檙e wondering which type of lien waivers to use for your construction project, review this comprehensive guide.
For GCs, lien waiver provisions should never be added to the contract for Massachusetts lien waivers. If the content or format doesn鈥檛 align 鈥渟ubstantially鈥� per , lien waivers could become void and unenforceable.
Subs and suppliers can add lien waiver provisions to the contract鈥攂ut make sure they don鈥檛 mistakenly eliminate lien rights. These parties must review all clauses carefully to protect their payments.
Massachusetts provides its own lien waiver form for many reasons, including more ease in interpreting disputes in the court of law. Since the language is so clear-cut, GCs using this form can rest easy knowing any disputes can be handled directly.
Subs and suppliers lose out on this initial leverage since the state-outlined form is only for GCs. We recommend keeping the format as similar as possible to the state-outlined form.
For all parties, it鈥檚 important to carefully review the lien waiver and job contract if a dispute arises. If it cannot be managed directly, consider consulting with a construction law attorney who is familiar with Massachusetts lien laws.
When operating a construction business in Massachusetts, review all the rules and regulations surrounding state lien laws. Start with the following list of 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.