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California Lien Waiver Applied To Unpaid Work Liens; Waiver

Wednesday, November 03, 2004 03:10 pm

California Lien Waiver Applied To Unpaid Work Liens; Waiver

A California court has ruled that the state's statutory conditional lien waiver form released mechanic's lien and bond rights for labor and materials furnished up to the stated date, regardless of whether the contractor actually received payment.

The City of Chico awarded a contract to Monterey Mechanical Co., Inc. for expansion of the municipal wastewater treatment plant. Monterey subcontracted the electrical work to Stratton Electric, Inc. which in turn subcontracted the instrumentation and controls to Tesco Controls, Inc.

Each time Tesco applied for progress payments, Stratton required Tesco to sign a conditional waiver [...]

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