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Lack Of Lien Waivers Precluded Final Payment Liens; Waiver; Substantial Completion

Thursday, November 03, 2005 04:23 pm

 
Lack Of Lien Waivers Precluded Final Payment Liens; Waiver; Substantial Completion

A Texas court has ruled that even when a contractor has achieved substantial completion of a project, recovery of final payment may be barred by failure to furnish lien waivers in accordance with the contract requirements.

TA Operating Corporation awarded a contract to Solar Applications Engineering, Inc. for construction of a truck stop/travel center in San Antonio. With regard to final payment, the contract stated: "The final application for payment shall be accompanied by...complete and legally effective releases or waivers (satisfactory to Owner) of all lien rights arising out of or lie [...]

 
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