Description

Lien release:  This is an extremely important document, and stops a contractor from being able to bill more than the agreed amount of the job and get away with it.  Also, many title companies or closing attorneys will require these to give you early issue title insurance.  These lien releases are just an all-around “must do” in your business.  Because you are just delivering a purchase order to a contractor to do work that is described in the said purchase order, when the contractor’s invoice comes in, all you do is match the invoice to the purchase order, and confirm the amount on your line item sheet budget.  Once you do that, all you have to do is send the lien release to your contractor to sign, which is contingent on them receiving the check.  Once you receive the signed lien release back from the contractor, you are now safe to release their check.  Make sure to include a sample copy of this lien release with the indefinite-quantity contract that your sub-contractor signs.