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Conditional Lien Waiver Was Not Fraudulent Liens; Waiver

Sunday, June 04, 2006 10:59 am

Conditional Lien Waiver Was Not Fraudulent Liens; Waiver

A California court has ruled that a supplier did not defraud a prime contractor by submitting a conditional lien waiver which reflected the subcontract schedule of values rather than the actual price of the materials.

Crane Development Corp. was the prime contractor on a hotel construction project in San Diego County. Crane awarded a fixed-price framing subcontract to BCH and Sons, Inc. The subcontract included a schedule of values calling for two progress payments totaling $785,350 upon delivery of lumber to the job site. BCH was required to submit conditional lien waivers, includ-ing wa [...]

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