ContractorHandbook

Vermont lien waiver: an advance waiver is not enforceable

Vermont settles this in one sentence, and it is the last sentence of the section that creates the lien in the first place. If somebody asked you to sign away your lien rights before you did the work, that provision is not enforceable in Vermont.

The rule to know before you sign in Vermont.

A Vermont contractor's lien cannot be waived before the labor is performed or the materials are furnished, and a contract provision calling for that advance waiver is unenforceable.

Read the law: 9 V.S.A. section 1921(f)codes.findlaw.com

9 V.S.A. 1921(f), word for word

A lien under this section may not be waived in advance of the time such labor is performed or materials are furnished, and any provision calling for such advance waiver shall not be enforceable.

Section 1921 is headed Extent of lien; notice, which is why this rule is easy to miss. It is subsection (f) of the section that grants the lien, not a separate anti waiver section, and it is not in the Prompt Payment Act at chapter 102 where most people look first.

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Download a blank Vermont lien waiver

Vermont prescribes no statutory wording, so this is the general conditional waiver on progress payment, the form that fits most draws. Print it and fill it in by hand, or use the builder below and get it back already filled in.

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What the rule covers and what it does not

The line Vermont draws is time, not paperwork. Before the labor is performed or the materials are furnished, a waiver of the lien for that work is unenforceable. After the work is done, a waiver is an ordinary contract term and it binds.

So a waiver clause sitting in the subcontract you signed in March does nothing to the lien for work you performed in June. A waiver you sign in June for work already completed is a different matter and it is effective.

Vermont gives you the rule and nothing else

There is no Vermont statutory waiver form, no required notice block, and no prescribed wording. The statute voids the advance waiver and then stops, which means the document you use for a payment you have already earned is entirely up to the parties.

That makes the conditional form the sensible default on every draw. The statute protects you from a waiver signed too early. It does not protect you from a waiver that is worded too broadly or that takes effect on a check that later bounces.

The chapter people look in first, and why it is the wrong one

Vermont's Prompt Payment Act is 9 V.S.A. chapter 102, sections 4001 through 4009, and it is the obvious place to look because it is the construction payment chapter. It is not the waiver rule. Section 4004 is about errors in an invoice and a ten working day window to object, 4006 permits advance and progress payments, 4007 covers disputes and penalties, 4008 handles contracts involving federal aid, and 4009 is the owner exclusion.

The rule lives in chapter 51, the contractor's lien chapter, at 9 V.S.A. 1921. Anyone quoting a section in the 4000s at you for a waiver question is quoting the wrong chapter.

Which of the four to sign on a Vermont job

The statute protects you from a waiver signed before the work or before the payment. It does not protect you from one worded too broadly, or handed over against a check that later bounces, so the conditional form is still the right default.

Questions people ask

Is an advance lien waiver enforceable in Vermont?

No. 9 V.S.A. 1921(f) says a lien under that section may not be waived in advance of the time the labor is performed or the materials are furnished, and any provision calling for such advance waiver is not enforceable.

My Vermont subcontract has a lien waiver clause in it. Does it work?

Not for work that had not been performed when you signed. The statute makes the advance waiver provision itself unenforceable, so the clause does not reach labor or materials supplied after signing. A waiver given for work already done is a different question and generally binds.

Does Vermont have a statutory lien waiver form?

No. Vermont prescribes no waiver wording at all. The statute voids the advance waiver and leaves the form to the parties, which is why a conditional waiver with the amount and through date filled in is the safer document to hand over.

How long does a Vermont contractor's lien last?

Under 9 V.S.A. 1921(c) the lien does not continue in force for more than 180 days from the time payment became due for the last labor performed or materials furnished, unless a notice of lien is filed with the town clerk. That is a filing deadline, not a waiver question, and it is worth checking against the statute for your own dates.

Working in another state? The general lien waiver forms page covers all four waiver types, and conditional vs unconditional lien waiver explains which of the two to sign and when.

This page quotes 9 V.S.A. section 1921(f) and explains what it says. It is not legal advice, and a statute can be amended. Read the linked section before you rely on it.