Ohio Waiver Wire
  • Lien waivers in a contract are enforceable against parties to that contract, it unlikely that such provisions are enforceable against lower tier subcontractors and suppliers.
  • Once a valid waiver is made, it can operate both prospectively and retrospectively. Therefore, it is essential to review the terms of the waiver, which may only waive current or past lien rights, but may also waive future rights.
  • "Paid if Paid" is enforced if explicit.
  • "Pay when Paid" suggests time for payment.
  • Pay-when-paid clause in the subcontract or purchase order does not create a condition precedent to payment.
  • Ohio Rev. Code § 4113.62(E): "Pay if paid" contract provisions will not prevent the subcontractor from filing a mechanic's lien.