What is a pay-if-paid clause in construction contracts?

A pay-if-paid clause makes the general contractor's obligation to pay the subcontractor conditional on receiving payment from the owner. If the owner doesn't pay, the subcontractor may have no legal right to collect. Pay-if-paid is void in California, New York, North Carolina, and several other states. SubShield automatically detects these clauses and tells you if they're enforceable in your state.

What is broad indemnification in construction contracts?

Broad form (Type I) indemnification requires the subcontractor to indemnify the general contractor even for the GC's own negligence. This creates unlimited liability exposure. Over 40 states have anti-indemnity statutes that void these clauses. SubShield identifies them and cites the specific statute that voids them in your state.

How does SubShield analyze construction contracts?

Upload your subcontract (PDF, Word, or paste text) and SubShield's AI analyzes it in about 60 seconds. You get a risk score (1-10), identification of 50+ risky clause types, negotiation language to propose to your GC, and state-specific legal information.

Is SubShield a substitute for a construction attorney?

No. SubShield is an AI-powered educational tool that helps subcontractors understand their contracts better. For high-value contracts ($500K+) or complex disputes, consult a licensed construction attorney. SubShield costs $47 per analysis; attorney review costs $300-500+. Use SubShield for initial screening, attorney for final review.

What states does SubShield cover?

SubShield provides analysis for all 50 US states with specific knowledge of state lien laws, anti-indemnity statutes, prompt payment act requirements, retainage caps, and pay-if-paid enforceability which varies significantly by state.

How much does SubShield cost?

SubShield offers a free trial with one full analysis per month. Single reports cost $47. Pro Monthly is $97/month for unlimited analyses. Pro Annual is $797/year for unlimited analyses. All paid plans include a 60-day money-back guarantee.

What is a no-damage-for-delay clause?

A no-damage-for-delay clause prevents the subcontractor from recovering monetary damages when the project is delayed, even if the delay was caused by the GC. The only remedy is a time extension, not compensation for increased costs. These clauses can cost subcontractors $23,000+ on average. SubShield detects these clauses automatically.

How is SubShield different from using ChatGPT to review contracts?

SubShield is purpose-built for construction subcontracts with 50+ clause type detection specific to construction, state-specific legal information for all 50 states, industry benchmarks (AIA, ConsensusDocs standards), negotiation language templates, and a GC reputation database. General AI tools lack this specialized construction knowledge.

Lien Waivers in Construction: The Complete Guide for Subcontractors

Lien waivers are one of the most misunderstood documents in construction. Sign the wrong one at the wrong time, and you've given up your most powerful collection tool.

What is a Lien Waiver?

A lien waiver is a document where you give up (waive) your right to file a mechanics lien against the property. In exchange, you receive payment.

The deal: You get paid, and the owner/GC gets assurance you won't lien the property.

The 4 Types of Lien Waivers

1. Conditional Waiver on Progress Payment

When used: With each progress payment request Effect: Waives lien rights ONLY for work covered by this payment, ONLY after payment clears

This is the safest waiver to sign with a payment request.

2. Unconditional Waiver on Progress Payment

When used: After receiving a progress payment Effect: Immediately waives lien rights for work covered, regardless of whether payment clears

DANGER: If the check bounces, you've still waived your rights.

3. Conditional Waiver on Final Payment

When used: With final payment request Effect: Waives all lien rights ONLY after final payment clears

4. Unconditional Waiver on Final Payment

When used: After receiving final payment Effect: Immediately waives ALL lien rights

NEVER sign this until final payment has cleared your bank.

State-Required Waiver Forms

These states require specific statutory waiver forms:

California - Must use Civil Code §8132-8138 forms

Texas - Must use Property Code §53.284 forms

Arizona - Must use A.R.S. §33-1008 forms

Georgia - Must use O.C.G.A. §44-14-366 forms

Michigan - Must use MCL 570.1115 forms

Using non-compliant forms in these states may void the waiver—or your lien rights.

The Golden Rules of Lien Waivers

Rule 1: Match Waiver to Payment Status

Payment REQUEST = CONDITIONAL waiver

Payment RECEIVED AND CLEARED = UNCONDITIONAL waiver

Rule 2: Match Amount to Work

Only waive rights for work you're actually being paid for. If your invoice was $50,000 and you're receiving $45,000, your waiver should only cover $45,000.

Rule 3: Never Pre-Sign Unconditional Waivers

Some GCs ask for signed unconditional waivers "to process payment." Don't do it. Payment should process based on your invoice and conditional waiver.

Rule 4: Wait for Checks to Clear

An unconditional waiver is effective immediately—even if the check bounces.

Red Flags in Lien Waiver Requests

Bad Request

"Please provide unconditional waivers through [date] to receive your check."

Translation: Give up your rights before you get paid.

Good Request

"Please provide conditional waiver with your invoice. Unconditional waiver due within 5 days of payment."

What to Do If Asked for Improper Waivers

Know your state's rules - Many states invalidate non-statutory forms

Counter-offer with proper conditional waiver

Add conditions like "This waiver void if payment not received by [date]"

Document the request in writing

Sample Language to Add to Waivers

If forced to sign a waiver before payment:

"This waiver is expressly conditioned upon actual receipt of payment in the amount stated. If payment is not received within 10 days, this waiver is void and of no effect."

Check with a construction attorney in your state before using.

Lien Waiver Tracking

Keep a log of every waiver you sign:

Date signed

Payment amount covered

Conditional or unconditional

Date payment received

Date payment cleared

This protects you if there's ever a dispute.

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Automate Your Protection

SubShield identifies dangerous lien waiver provisions in your contracts before you sign. We flag requirements for unconditional waivers before payment and other red flags.

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*Questions about lien waivers? Email us at hello@trysubshield.com*

Lien Waivers in Construction: The Complete Guide for Subcontractors

Lien Waivers in Construction: The Complete Guide for Subcontractors

What is a Lien Waiver?

The 4 Types of Lien Waivers

1. Conditional Waiver on Progress Payment

2. Unconditional Waiver on Progress Payment

3. Conditional Waiver on Final Payment

4. Unconditional Waiver on Final Payment

State-Required Waiver Forms

The Golden Rules of Lien Waivers

Rule 1: Match Waiver to Payment Status

Rule 2: Match Amount to Work

Rule 3: Never Pre-Sign Unconditional Waivers

Rule 4: Wait for Checks to Clear

Red Flags in Lien Waiver Requests

Bad Request

Good Request

What to Do If Asked for Improper Waivers

Sample Language to Add to Waivers

Lien Waiver Tracking

Automate Your Protection

Ready to Protect Your Next Contract?

More Resources

Turner Construction Subcontract Analysis: What to Watch For

Retainage in Construction: What Subcontractors Need to Know