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Whether you鈥檙e a general contractor (GC), subcontractor, or property owner, understanding North Dakota 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.
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 North Dakota 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.)
North Dakota lien waivers are completely unregulated with regard to form, content, and timing. To avoid confusion, here are a few key points to note:
- The state doesn鈥檛 provide any specific or statutory lien waiver form.
- In North Dakota, it鈥檚 totally legal to waive lien rights in the contract or before payment.
Your first reaction might be relief. Parties can include anything they want in the lien waiver! However, this leeway can often tilt in favor of owners, who draft contractual provisions that eliminate your lien rights. To stay ahead of any potential complications, carefully review every clause in your contract and negotiate for supportive lien waiver terms that stipulate fair payment. It also doesn鈥檛 hurt to understand what makes North Dakota lien waivers valid and how to cover all your bases before doing business.
North Dakota doesn鈥檛 mandate a specific or statutory lien waiver form.
Both conditional and unconditional lien waivers are accepted in North Dakota.
It isn鈥檛 required to notarize a North Dakota lien waiver (unless requested by the client).
To be considered valid in North Dakota, 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
In North Dakota, parties can waive lien rights in the contract, even before work begins.
North Dakota doesn鈥檛 include any statutory provision that prohibits waiving lien rights before payment.
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.
North Dakota doesn鈥檛 provide a specific or statutory lien waiver form. Adhere to any project-specific requirements in the overarching job contract to ensure compliance.
No specific statutory requirements govern the validity of lien waivers in North Dakota. It鈥檚 up to you to make sure the lien waiver is valid:
- It should clearly state the amount being waived and the property to which it applies, and
- It must be signed by the party waiving their lien rights.
North Dakota state law allows parties to waive lien rights in the contract, essentially eliminating construction teams鈥� leverage to get paid before project work begins or before payment. Negotiate against these provisions to advocate for fair payment processes instead.
Just as North Dakota doesn鈥檛 specify the format for lien waivers, the state also doesn鈥檛 comment on when parties should exchange them.
We recommend starting with general construction best practices. Lien waivers can be exchanged with payment applications (conditional lien waivers) or upon receipt of payment (unconditional lien waivers). Remember that unconditional lien waivers are binding upon signing, so only do so once you鈥檝e received payment.
To decide which lien waiver subset is best for your construction project, review this comprehensive guide.
Lien waivers in North Dakota are unregulated, making any potential disputes extra complicated to handle. Since the state doesn鈥檛 provide guidelines around what should be included in a lien waiver, parties can add any information they want. And if a particular clause supporting owners vs. subs stays in the contract, the court will likely side with owners.
It鈥檚 important to set yourself up for success before the project begins and carefully review the lien waiver and corresponding job contract. Request to remove anything that attempts to do away with your lien rights.
If the dispute can鈥檛 be handled through negotiation and mediation, it might be time to consult with a construction law attorney familiar with North Dakota lien laws.
Here鈥檚 where to start when learning about North Dakota lien waivers. Thanks to this handy list, you鈥檒l get a sense of state statutes, licensing guidelines, and more:
- (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.