Lien waivers: Is it really just a lien waiver or is it more?

Lien waivers are part of doing business for contractors. Just because the document is called a "lien waiver" doesn't mean that's all you will be waiving if you sign it. Modern lien waivers often cover much more ground than just mechanic's liens. In fact, it's not uncommon for lien waivers to waive a contractor's mechanic's lien rights along with any statutory or contractual payment bond rights, breach of contract rights, and even extra-contract claims like unjust enrichment. Here are some of the things to watch for: 1. Make sure you understand the nature of the rights you are waiving. 2. Make sure you understand the monetary value of any rights being released or preserved. 3. Pay attention to the effective date of the waiver.