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Whether you鈥檙e a general contractor (GC), subcontractor, or property owner, understanding Ohio 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 Ohio 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.)
The world of Ohio lien waivers is similar to the Wild West. The state doesn鈥檛 regulate lien waivers, from format to content to timing for their exchange. This can make doing construction business in Ohio confusing鈥攂ut when you understand lien waiver fundamentals and how these forms can protect you in terms of getting paid on time and fairly, you can safeguard yourself during your project and stay focused on the job at hand.
A few key points add to complex lien waiver rules in Ohio: It鈥檚 completely legal to waive lien rights prior to payment or before work begins on a project. Literally, any clause can be baked into the contract. Read over everything with a critical eye, and ask to remove language that puts your lien rights at risk.
Here鈥檚 what you need to know when handling Ohio lien waivers:
- Pay-if-paid clauses are valid here if explicitly detailed in the contract. This means the GC only needs to pay subcontractors if they are paid by the property owner. We recommend subs negotiate for their removal in favor of a pay-when-paid clause instead.)
- claimants can take if they don鈥檛 receive payment. Disputes can be brought to 鈥渢he court of common pleas鈥� in the county in which the property is located.
In Ohio, parties can use their own form for lien waivers; there is no state-provided form.
Ohio accepts both conditional and unconditional lien waivers.
Notarization isn鈥檛 required for Ohio lien waivers. (The client can request it if they鈥檇 like.)
To be considered valid, Ohio lien waivers must:
- be in writing
- be completed via express agreement
- be signed by the waiving party
- clearly state the amount being waived and the property to which they apply
Ohio state law does not include any statutory provisions that prohibit waiving lien rights in the contract.
It鈥檚 legal to waive lien rights before payment in Ohio.
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.
Ohio doesn鈥檛 provide a specific or statutory lien waiver form for construction teams. Review the lien waiver and contract to represent any project-specific requirements before signing.
No specific statutory requirements govern the validity of Ohio lien waivers. That being said, it鈥檚 up to you to make sure the lien waiver is good to go by making sure it comprises the following elements:
- 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.
Ohio state law doesn鈥檛 stipulate when lien waivers must be exchanged. Decide on Ohio lien waiver timing based on general construction best practices, and detail it in your job contract.聽
Lien waivers in Ohio can either be exchanged with payment applications (conditional lien waivers) or upon receipt of payment (unconditional lien waivers). When submitting an unconditional lien waiver, remember that it鈥檚 binding upon signing, so only do so after you鈥檝e been paid.
To decide which lien waiver subset is best for your construction project, review this comprehensive guide.
Any lien waiver provision can be added to the contract in Ohio鈥攅ffectively waiving construction teams鈥� lien rights at any time during the project, either before it begins or before you鈥檙e paid.
Negotiate against any clauses that attempt to take away your lien rights. You deserve fair compensation for the work you complete. While it can take some time in the beginning, this move will help protect you in both the short- and long-term for Ohio construction work.
Ohio law tends to be open-ended when it comes to lien waivers and how they鈥檙e handled. Since Ohio lien waivers aren鈥檛 regulated, owners often have the upper hand in disputes.
If complications occur over your Ohio lien waiver, review the form and corresponding job contract to ensure the exchange of lien rights for work performed is detailed.聽
Should meditation and negotiation prove unhelpful, consider consulting with a construction law attorney who is familiar with Ohio lien laws. , where lawmakers will place their focus on lien affidavits and payment bonds associated with the project.
Ohio lien waivers can be tricky if you don鈥檛 cover your bases. Whether you鈥檙e a GC, sub, or supplier, review the following resources to get started:
- (covers mechanic鈥檚 liens)
- (covers dispute protocol)
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.