Instructions on how to collect and send lien waivers and the benefits of using Beam for lien waiver management
Note: Lien waiver management is currently available to Plus and Scale customers. To learn more about these tiers, please visit our pricing page.
How can I collect lien waivers from my subcontractors?
- When you create a project, you can determine whether to collect lien waivers for each bill and/or send lien waivers with each invoice
- Once a project is created, you can always edit the project details by hitting "More actions -> Edit details" from the project page to change this setting.
- Then, you'll create a subcontract for your vendor (See: How do I pay my subcontractors through Beam?)
- Next, you'll add a bill to pay for that subcontract and complete the first two steps as usual
- In the third step ("Finalize and add"), you can choose between collecting e-signature from the vendor or uploading an existing lien waiver document
- Please note: Payment will not be initiated until the vendor has submitted their lien waiver
- As a result, your subcontractor will receive an email prompting them to sign up (if necessary), sign the lien waiver, and enter in payment information. They will be able to indicate if this is the last payment for the subcontract which alters the form
- You can always click on the “Bills” tab, in the “Cost” section of a project to see if your subcontractor has signed the lien waiver
How can I send lien waivers to a client?
- When you create a project, you can determine whether to collect lien waivers for each bill and/or send lien waivers with each invoice
- Once a project is created, you can always edit the project details by hitting "More actions -> Edit details" from the project page to change this setting.
- During the third step of the invoice creation process, you'll select whether this is the final invoice for this project, click "I agree to use electronic records and signatures," type your name, and click "Next: additional details"
- Once the invoice has been paid, you'll be prompted via email to sign the unconditional lien waiver which mirrors the conditional lien waiver flow
If you'd like to see a detailed tutorial on either, check out this video:
What are the benefits to using Beam for lien waivers?
Beam streamlines and automates the lien waiver process, saving time and reducing risk for construction projects. With Beam, you can effortlessly collect lien waivers online, ensuring your draw process remains smooth and efficient.
- Customization: The platform offers customizable project rules, allowing you to tailor waiver requirements for specific subcontractors and vendors.
- Automation: Beam's automated email system requests missing waivers and follows up for unconditional waivers post-payment, keeping all parties informed and compliant.
- Efficiency: The e-signature feature, compliant with the Federal ESIGN Act, eliminates manual data entry and expedites the signing process.
- Visibility: Real-time visibility into compliance statuses and centralized document storage provide peace of mind and easy access to critical information.