Frequently clients ask me whether they should sign lien waivers saying that they have been paid in full as a precondition of being paid. My answer is an unequivocal NO. If you are a sub-subcontractor who signs a mechanics lien, lien waiver as a precondition to getting paid by the subcontract company you contracted with, you will find yourself in a heated dispute with a general contractor that relied on the lien waiver to pay the sub contractor. If you, as the sub-subcontractor or supplier seek to be paid by the general contractor when the subcontractor does not pay you, the general contractor almost always takes the position that they paid the subcontractor, relied on your lien waiver when they paid the subcontractor and thus, they don’t owe you any money. This position, absent fraud, is a very, very strong position in the eyes of the court system. It is very important that you think about the repercussions of each document that you sign.

Not sure what to sign when trying to collect commercial debt owed? Have questions about the best course of action to get you paid when you need a commercial debt collection attorney, just call Cellai Law, Massachusetts’ Trusted Law Offices for debt.

Carlo Cellai, Esq.