Lien Waiver Payment Hold Overview
Select payment hold settings for missing Sub-Tier Subcontractor lien waivers on the Project Settings page.
See the Payment Hold Settings topic for more information about these settings.
Note: You can also choose for the application to automatically place payment hold on Subcontractors with missing sub-tier lien waivers in prior or the current draw.
Manually Applying Lien Waiver Holds
The table on the Manage Lien Waivers page shows a row for each Subcontractor. Sub-Tier organizations nest beneath their Prime Subcontractors. You can use the Draw Selector at the top of the page to move between different draws.
- If a Subcontractor does not submit a lien waiver on time for a draw and the lien waiver is eligible for a hold based on current project settings, the status displays in orange in the GC Approval column.
- If a Sub-Tier lien waiver is missing from the draw and the lien waiver is eligible for a hold based on current project settings, the status will display in yellow and the Subcontractor may be placed on hold.
- If a Subcontractor does not submit a lien waiver on time for a draw, the lien waiver is eligible for a hold based on current project settings, and the application placed a lien waiver hold, the status displays in red.
- If a Subcontractor or Sub-Tier submits a lien waiver after a hold is placed and then you, as the General Contractor, update lien waiver status, the application automatically removes the hold from the lien waiver.
Hold status displays on the Manage Lien Waivers, Manage Lien Waivers by Draw, and View Lien Waiver Status page, but you can only apply holds from the Manage Lien Waivers page.
Enabling Automated Holds:
You can enable the Automatically apply a payment hold when sub-tier prior period invoice doesn't have a lien waiver or Automatically apply a payment hold when sub-tier prior current invoice doesn't have a lien waiver hold setting when creating or modifying a project from the Project Settings page.
When this setting is enabled on a current project with existing draws, the system reviews all open draws related to the project and automatically places a hold on Subcontractors with missing Sub-Tier lien waivers. Note, this process runs in the background and can take up to a minute complete.
Sub-Tiers and Subcontractors with missing lien waivers are placed on hold, indicated by a RED status in the GC Approval column on the Manage Lien Waivers page. Any future invoices submitted without the required lien waivers or updates indicating a rejection of previously submitted waivers will automatically trigger holds for the affected Sub-Tiers.
Compliance Managers can review the Lien Waiver status and applied holds from the Manage Lien Waivers, Manage Lien Waivers by Draw, and View Lien Waiver Status pages. Compliance Managers can coordinate with the Disburser to release the payments.
Note: If your organization needs to enable the automated hold settings for a large portfolio of projects, contact Customer Support by creating a Service Request.
Related Topics
Last Published Wednesday, September 4, 2024