Liens and Waiver of Liens Clause Samples
The Liens and Waiver of Liens clause establishes that contractors, subcontractors, or suppliers agree not to place any liens or claims against the property for unpaid work or materials. In practice, this clause often requires these parties to provide formal waivers or releases of lien rights as a condition for receiving payment, ensuring that the property owner is protected from potential legal claims. Its core function is to prevent disruptions or encumbrances on the property title, thereby safeguarding the owner's interests and facilitating smooth project completion.
Liens and Waiver of Liens. (i) If any part of the Work shall become subject to any vendor's, mechanic's, laborer's, materialman's or other lien or encumbrance (collectively, “Liens”) based upon the delivery of the Work, the QESP shall cause any or all of the Liens to be discharged of record at its sole cost and expense prior to the Commencement Date or, if not of record at that time, then within one hundred twenty (120) calendar days after it receives notice of the Liens.
(ii) Lien waiver certificates, in a form and substance satisfactory to the Department, shall be submitted by the QESP with all payment requests certifying that the Work is free and clear of all Liens and any other encumbrance for any part of the Work completed. QESP shall also provide Lien waivers at the time of the Commencement Date in a form and substance satisfactory to the Department that, upon completion and acceptance of the Work, the Work is free and clear of all Liens. If any person or entity refuses to furnish a release or waiver, the QESP shall, at the request of the Department, furnish a bond satisfactory to the Department to indemnify the Department against any potential Lien. If a Lien remains unsatisfied after payments are made, then the QESP shall refund to the Department all moneys that they may be compelled to pay in discharging the Lien, including all costs and reasonable attorney’s fees, no later than thirty (30) days after receiving a written refund request from the Department. The Department may withhold amounts due to the QESP as it deems to be necessary or appropriate to protect the Department against any losses arising out of the outstanding Liens or claims of former Lien holders and to reimburse the Department for any costs and expenses incurred in the satisfaction and discharge of the Liens and, in required, the procuring of similar Work.
(iii) Notwithstanding the provisions of this Liens and Waiver of Liens Section, a Municipality may execute and deliver financing documents and instruments in connection with a Municipality’s SOW that allow the filing of Liens for purposes of securing the interests of the financing institution involved in that Municipal transaction. If so, then this Section shall be read and interpreted to allow the filing of Liens in accordance with the provisions of the financing-related documents and instruments, but only as applicable to and for purposes of the Municipality’s SOW.
Liens and Waiver of Liens. Contractor agrees to provide Customer lien waivers, lien releases, and/or acknowledgement of full payment upon receipt of each payment laid out in the Payment Schedule in Section 4 above.