How Builders are Protecting their Most Valued Relationships

  • November 28, 2023

Ask any builder who their most important relationship is and they’ll likely tell you there are actually two: their lender and their subcontractors. While there are many factors that ensure a project performs as intended, real estate is all about relationships. These two key groups are essential for builders to keep projects starting and finishing on time and on budget.

Knowing the importance of these relationships in their construction projects, savvy builders look for ways to strengthen and enhance them. One simple, yet too often overlooked tool, is the lien waiver. In the past, the paperwork challenge was sometimes an obstacles for busy builders, but there is a modern tech solution (see how Sekady’s lien waiver solution can benefit you.) By adding transparency and security to each transaction, lien waivers are an easy yet effective way to protect value and take care of the relationships that take care of you.

Risk Mitigation

Lenders seek a return on their investment, while simultaneously managing risk. Lien waivers are a powerful tool to do just that. Builders who offer up this solution make their lender’s job easier and reduce their risk at the same time. By securing lien waivers from subcontractors and suppliers, builders can reassure lenders that their investment is safe from potential legal disputes.

Subcontractors also benefit from lien waivers because it means they’ve been paid. Once the builder pays their invoice, the subcontractor waives their right to lien the property for the work performed. This adds transparency and clarity in the relationship and keeps projects moving free from unnecessary delays or added costs.

Project Progress

Lien waivers help move the loan forward. They assure funds are being put to effective use, boosting lenders’ confidence in the builder’s ability to meet project milestones.

Similarly, when subcontractors and suppliers understand that they will be paid without delays, they are more likely to complete their work on time. Timely completion of subcontractor work is critical to overall project progress. Lien waivers incentivize subcontractors to fulfill their obligations promptly, knowing they will receive payment. This leads to smoother project timelines and better overall efficiency.


Securing financing can be a challenging aspect of construction projects. Lenders need assurance that their funds will be used wisely and that there are no lurking risks that could impact repayment. Lien waivers provide this assurance, making it easier for builders to secure loans and financing at favorable terms.

Subcontractors often rely on timely payments to meet their financial obligations. By promptly providing lien waivers and payments, builders strengthen their subcontractor relationships. This, in turn, ensures that subcontractors remain willing and capable partners in future projects.


Maintaining a solid reputation with lenders is crucial for builders seeking continued financial support. By consistently using lien waivers and managing financial aspects transparently, builders build trust with lenders. This trust can lead to long-term relationships, making it easier to secure financing for future projects.

Reputation is everything in the construction industry. Builders who consistently honor their financial commitments and respect subcontractors’ rights earn a reputation for reliability and professionalism. Such a reputation attracts top-tier subcontractors, making it easier to assemble high-performing project teams.

Builders are busy, Sekady can help. Our powerful software solution can help you pay your subcontractors on time, and collect lien waivers. It’s a win-win for your most valuable relationships.

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