What Is a Lien Waiver? Types, and the Oregon and Washington Lien Rules Owners Should Know
A lien waiver is a signed document in which a contractor, subcontractor or supplier gives up its right to file a construction lien for the amount it has been paid. Owners collect them with each payment so that nobody down the chain can put a lien on the property later for work that was already paid for. There are four common types, and neither Oregon nor Washington prescribes a statutory waiver form, so the contract sets it. What the states do set are the lien deadlines: generally 75 days in Oregon and 90 days in Washington.
| Waiver type | Covers | Takes effect |
|---|---|---|
| Conditional, progress payment | One progress payment | Only once that payment clears |
| Unconditional, progress payment | One progress payment | When signed, paid or not |
| Conditional, final payment | The whole job | Only once the final payment clears |
| Unconditional, final payment | The whole job | When signed, paid or not |
The four types in common use across the US. Oregon and Washington leave the form to the contract.
Building in Oregon or Washington? We work under both states' lien laws, licensed in Oregon (CCB #198582) and registered in Washington (L&I MODERNI888R7). Call (360) 326-2747.
Why lien waivers matter to an owner
On a commercial job, the owner pays the general contractor, who pays the subcontractors and suppliers. If someone down that chain is not paid, the law can let them file a lien on the property, even if the owner already paid the general contractor in full. A lien waiver with each payment is the owner's proof that the money reached the people it was meant for. Our Destination 339 job in Camas, for example, brought in framing, electrical, an elevator, HVAC, fire alarm and sprinklers, flooring, plumbing, roofing and more: each one a potential lien claimant.
Conditional vs unconditional
A conditional waiver says, in effect, "I give up my lien rights for this amount once the payment clears." An unconditional waiver gives them up when it is signed, whether or not the money has arrived. A contractor should sign conditional waivers until the funds are in hand; an owner should collect unconditional waivers for earlier payments that have cleared. A progress waiver covers one payment; a final waiver covers the whole job and usually goes with the final payment and the release of retainage.
Oregon lien rules (ORS chapter 87)
- Deadline: 75 days. A contractor or supplier must perfect a lien by filing a claim with the county recording officer not later than 75 days after it stopped providing labor or materials, or 75 days after construction is completed, whichever is earlier (ORS 87.035).
- Notice of right to a lien. Someone who supplies the job without a contract with the owner generally has to send the owner a notice of right to a lien, and it only protects what was provided from eight days before the notice, not counting weekends and holidays (ORS 87.021). The form says "THIS IS NOT A LIEN" (ORS 87.023).
- The commercial exception. On a commercial improvement, people who provide labor, labor and material, or rent equipment for the job do not have to give that notice to keep their lien rights (ORS 87.021).
Washington lien rules (RCW chapter 60.04)
- Deadline: 90 days. A claim of lien has to be recorded in the county within 90 days after the claimant last furnished labor, professional services, materials or equipment (RCW 60.04.091).
- Notice to owner. Those furnishing professional services, materials or equipment generally have to notify the owner of their right to claim a lien, and the notice protects only what was supplied within 60 days before it (RCW 60.04.031).
- Release on payment. Once a claimant is paid, it must give a release of lien rights when the owner or payer asks for it. A court can award costs, attorney fees and damages if it is delayed without reason (RCW 60.04.071).
- Jobsite notice. On projects over $5,000, the prime contractor posts a notice at the site with the owner's and contractor's information, including the contractor's registration number (RCW 60.04.230).
Our Oregon and Washington guides cover the other differences between building on each side of the river. Oregon lien deadlines can run from the completion date, which is what a notice of completion records.
How to handle lien waivers as an owner
- Make them part of every pay application. A conditional waiver for the current payment, and unconditional waivers for the last one, from the contractor and the major subcontractors and suppliers.
- Check the amounts. The waiver should match what was paid on the schedule of values.
- Keep the notices you receive. An Oregon notice of right to a lien or a Washington notice to owner tells you who else is on your job.
- Get final waivers before the final payment. Tie the final payment and the retainage release to final, conditional waivers from everyone owed money.
This is a plain-language guide from a contractor, not legal advice. Your contract and your attorney have the final word. Related terms are in our commercial construction glossary.
Frequently asked questions
What is a lien waiver?
A signed document in which a contractor, subcontractor or supplier gives up its right to file a construction lien for the amount it has been paid. Owners collect them with each payment so nobody down the chain can later put a lien on the property for work that was already paid for.
What is the difference between a conditional and an unconditional lien waiver?
A conditional waiver only takes effect once the payment actually clears. An unconditional waiver takes effect when it is signed, whether or not the money arrived. That is why a careful payee signs conditional waivers until the funds are in hand.
Does Oregon or Washington have a required lien waiver form?
Neither state is on the list of states with statutory lien waiver forms, so the form is set by the contract. What the statutes do set are the lien deadlines and notices, and Washington requires a release of lien rights on payment when the owner asks for it.
How long does a contractor have to file a lien in Oregon?
Generally 75 days. Under ORS 87.035, a contractor or supplier must perfect the lien within 75 days after it stopped providing labor or materials, or 75 days after the construction is completed, whichever is earlier.
How long does a contractor have to file a lien in Washington?
Ninety days. Under RCW 60.04.091, the claim of lien has to be recorded in the county within 90 days after the claimant last furnished labor, professional services, materials or equipment.
The bottom line
A lien waiver trades a payment for a promise not to lien the property for that amount. Collect them with every payment, use conditional waivers until money clears, and know the deadlines: generally 75 days in Oregon and 90 days in Washington.
Modern Northwest has built commercial projects in Oregon and Washington since 2005. Tell us about your project.
Building in Oregon or Washington?
Tell us about the project. We will walk you through how payment, waivers and closeout work on your side of the river.
Request a Free Consultation