Collecting Waivers from Subcontractors

How to collect Conditional and Unconditional waivers and the four waiver statuses OwnerDraw tracks.

Collecting Lien Waivers

Lien waivers protect you from a contractor or supplier filing a mechanics' lien against your property after they've been paid. OwnerDraw tracks waiver status on every expense so you're never caught off guard during a draw.

When to Collect

  • **Conditional waiver** — signed *before* or *with* payment. It's "conditional" because it only takes effect once the check actually clears.
  • **Unconditional waiver** — signed *after* the payment has cleared. This is your strongest protection.

For most expenses, the workflow is: send a Conditional with payment, then collect an Unconditional once the funds settle.

The Four Waiver Statuses

On each loan-funded expense over the project threshold, you'll set one of:

  • **Not Required** — small purchases, retail materials, or vendors below your threshold.
  • **Conditional Sent** — you've sent the conditional waiver to the vendor for signature.
  • **Conditional Signed** ✓ — vendor has signed the conditional waiver.
  • **Unconditional Received** ✓✓ — vendor has signed the unconditional waiver after payment cleared. This is the goal.

> The threshold defaults to **$500** for loan-funded expenses. Anything over that requires a signed waiver to be included in a bank draw.

How to Send a Waiver

1. Open the expense and click **Generate Waiver**.
2. Pick **Conditional** or **Unconditional**.
3. The system emails the vendor a secure signing link (no login required).
4. As soon as they sign, the waiver status updates automatically and the signed PDF is stored with the expense.

If a Vendor Refuses

Do **not** pay a vendor who refuses to sign a waiver — that's a major red flag. Options:

1. Explain that lien waivers are standard practice and required by your bank.
2. Offer the digital signing link — it takes them under a minute on a phone.
3. If they still refuse, find a different vendor.

> WARNING: A vendor who refuses to sign may be planning to file a lien regardless of payment. Protect yourself.