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Whether you鈥檙e a general contractor (GC), subcontractor, or property owner, understanding Wisconsin 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 Wisconsin 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.)
Wisconsin's lien waiver laws are complex, even though the state is one of 38 without a mandated form. This means parties can include anything they want in a Wisconsin lien waiver. And because many lien and lien-related statutes favor the owner, even small mistakes can invalidate a waiver and unintentionally relinquish lien rights. Therefore, construction teams in Wisconsin must be meticulous and adhere strictly to the rules鈥攅asier said than done.
Wisconsin law has seemingly contradictory provisions:
- prohibits contractual provisions that require laborers to waive their lien rights (or claims against a payment bond) before they've been paid for work, services, materials, plans, or specifications.听
- However, states that any signed lien waiver is "valid and binding," regardless of payment or timing. This means a laborer could technically sign away their rights before even starting work or providing materials, even if no such contractual provision exists.
Remember this difference: While contractual provisions waiving your lien rights aren鈥檛 allowed here, Wisconsin lien waivers are binding whenever you sign them. Ultimately, it鈥檚 important to review the lien waiver form and corresponding job contract to make sure your lien rights stay protected through fair payment terms.听
Here are some other key considerations when handling lien waivers in Wisconsin:
- Within 10 days after work begins, materials are furnished, or plans are procured under the authority of the GC, laborers need to provide either the owner or authorized agent with the . The text must follow the language in 鈥渟ubstantially鈥� to be valid. This document acts as a safeguard to fair, timely payment.听
- Lien waivers need to be extremely clear-cut to support GCs, subs, and suppliers in the state of Wisconsin. that 鈥渁ny ambiguity in such document shall be construed against the person signing it,鈥� putting owners in the driver鈥檚 seat in case of a dispute.
Wisconsin doesn鈥檛 require parties to use a specific statutory form.
Wisconsin accepts both conditional and unconditional lien waivers.
Wisconsin lien waivers don鈥檛 need to be notarized, but your client can request it.
To be considered valid in Wisconsin, 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
- be preceded by a
In Wisconsin, to waive lien rights in the contract before an individual has been paid for work performed or materials supplied.
Lien rights cannot be waived in the contract ; however, Wisconsin lien waiver statutes note that lien waivers are binding once signed, .
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.
Wisconsin doesn鈥檛 provide parties with a specific, statutory lien waiver form. The contents can include anything owners want鈥攊ncluding language that takes away important leverage to get paid. Read the contract and corresponding lien waiver forms carefully, and advocate for fair payment language if necessary.
While Wisconsin lien waivers are largely unregulated, there are still some important rules to follow to make sure they鈥檙e valid documents:
- They should clearly state the amount being waived and the property to which they apply,聽
- They must be signed by the party waiving their lien rights, and
- They must be preceded by a within 10 days after labor begins or materials are purchased.
Wisconsin statutes don't specify when lien waivers must be exchanged. While a contract cannot force someone to give up their lien rights before payment (), the state also deems signed lien waivers "valid and binding" () regardless of payment. This creates a tricky situation: Even though a contract can't require a pre-payment waiver, if someone does sign one (even without a contractual requirement), it's considered legally binding because of 779.05.
This means that while technically, a Wisconsin lien waiver can be signed at any time, signing one before payment is extremely risky and can result in losing your lien rights without getting paid. Do not sign a lien waiver before you have been paid.
When exchanging both conditional and unconditional waivers, we recommend following these timing rules, recognized as industry best practices:
- Conditional lien waivers, which are only effective once payment is received, are exchanged with progress payment applications.
- Unconditional lien waivers become binding upon signature, even if payment hasn鈥檛 been received. These documents should only be submitted following payment for Wisconsin construction jobs.
For a more detailed breakdown of lien waiver types and timing, check out our handy lien waiver guide.
, any contractual provisions that ask contractors to waive their lien rights or claim them against a payment bond before payment for their work, services, or materials furnished are not allowed. This move protects construction teams from agreements that eliminate their leverage for fair payment.听
Lien waiver disputes can be messy and delay any late payments even further. Wisconsin courts judge lien waivers by their intent; .听
Keeping this in mind, read over your lien waiver form and corresponding job contract if you enter into a dispute. Try to mediate with the other party directly. If this doesn鈥檛 pan out, consider consulting with a construction law attorney who is familiar with Wisconsin lien laws.
Wisconsin statutes dive deep into regulations around lien waivers, mechanic鈥檚 liens, and more. Review the following legal and organizational resources before starting a construction job in the state:
- (for contractors working on one- and two-family dwelling projects)
- (for all other licenses)
- (log in to join)
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.