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Watch out for lien subordination

from By Nate Budde

Lien waivers are important in construction payment. The parties in control of the money want the project to proceed free of lien claims, for several reasons. Mechanics liens can potentially force double payment, cloud the property title, and negatively impact bonding capacity and cash-flow. The strong desire to avoid lien claims, coupled with the hard truth that obtaining full protection via lien waivers can be difficult, can result in trying other means to avoid lien exposure. more


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