New Feature Release: The Unconditional Lien Waiver Vault
We’re introducing the Unconditional Lien Waiver Vault! 🎉 This feature allows general contractors and subcontractors to exchange unconditional lien waivers seamlessly and securely.
In the industry’s current process, unconditional lien waivers are effective as soon as they are signed, and indicates that the contractor is acknowledging they were paid. Currently, unconditional lien waivers are collected and sent back and forth via email, which is not very secure for such a sensitive document. Additionally, it can be a pain to collect unconditional documents that are actually correct when they are needed.
So, what is the “Unconditional Lien Waiver Vault”?
The unconditional lien waiver vault:
- Provides a seamless and secure interface to exchange payments & unconditional lien waivers
- Subcontractors can sign their unconditional lien waivers, and the waiver will not be released until the subcontractor has received payment- either by both parties confirming in FlashPrime, or when the general contractor pays the subcontractor directly in Flashtract through ACH.
- All unconditional lien waivers are collected, generated and managed within the app- no more digging through emails.
Manage unconditionals in just 4 steps
📋 Step 1.
The general contractor sets up unconditional lien waivers as a billing requirement template
🖋️ Step 2.
The subcontractor receives & signs the unconditional waiver like their other documents. This locks away the conditional lien waiver in the Unconditional Lien Waiver Vault.
The unofficial copy of the Unconditional is generated and becomes viewable to all parties.
🚦 Step 4.
The official unconditional lien waiver becomes available when one of two conditions is met.
This method makes it immediately clear if an unconditional lien waiver has been issued and verified. It additionally removes a lot of risk for both the subcontractor and their GC revolving around ensuring that payments are received and that the amounts are correct.
Why does this matter?
As mentioned earlier, the current unconditional lien waiver collection process can be very risky for both parties involved. If a general contractor pays a subcontractor, but that subcontractor doesn’t issue an unconditional lien waiver; that GC may be on the hook for extra payouts. On the flip side, subcontractors may be pressured into releasing an unconditional lien waiver when they aren’t sure they have been paid yet.
Those two scenarios can happen too easily, just because documents, receipts or communications get lost in all of the other stuff coming in and out of mailboxes. Additionally, tracking where everyone is in this process (if you’ve been paid, or if you owe an unconditional) can be tricky when you’re juggling multiple projects.
Rather than relying on snail-mail or third party payment options, Flashtract wants to kill two birds with one stone.
How does this feature improve your unconditional lien waiver process?
Stop needing to chase down unconditional waivers
General contractors are often working alongside many different subcontractors on many different projects. There are already dozens of documents that need to be issued and collected throughout the duration, and sometimes those documents slip through the cracks. An unconditional lien waiver is a bad document to lose, though, so now Flashtract will allow for management of it directly in the app.
Allow subcontractors to be securely paid
The unconditional lien waiver vault works hand-in-hand with Flashtract’s built-in ACH payments. General contractors can securely pay subcontractors right within the app, and that payment is tracked in our system, making it easy to see who has and has not been paid.
Official documents are only released when payment is confirmed received.
Rather than needing to solely rely on emails and word of mouth to confirm payments, both parties must certify that they issued or received payment within our app, making this process much more transparent and secure. This happens one of two ways.
- The GC pays their subcontractor via our official ACH feature. The official unconditional would be released immediately upon the payment clearing.
- Both parties put in their pin and acknowledge they respectively sent or received the payment. The official document would only be released once the general contractor has marked the invoice as paid, and subcontractor has agreed that they received the correct amount.
Remove old, outdated processes
Flashtract’s billing requirement templates can support any kind of billing requirement that fits within Flashtract’s rule framework (which is most!). Create as many or as few templates as you want.
Ready to learn more?
Are we keeping the old unconditional workflow?
This is an update (and by extension, replacement) for the old unconditional workflow.
When exactly does the unconditional waiver get released if you use ACH?
The unconditional lien waiver will not leave the vault until the GC’s payment has hit the subcontractor’s bank account.
How can I easily tell what has been collected and what has not?
On the invoices dashboard, the GC can see which unconditionals are pending or released via the lock icon in the unconditionals column.