A Lender’s Guide to Frictionless Mechanic Lien Waivers

SUMMARY

Lien waivers are an essential part of construction lending for a fair payment process. However, the lien waiver process is seen as a major friction point for lenders and contractors, leading to an inefficient process, higher risk, and unnecessary project delays.

By understanding the risks and pitfalls of traditional lien waiver practices, lenders can plan for a more modern, frictionless method that provides better visibility on risk and protection for all stakeholders.

Learning objectives:

• Understanding the risk of an inconsistent, manual lien waiver process
• Common pitfalls and pain points for lenders and contractors
• Best practices for a seamless lien waiver process