January 24

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How The Automation of Lien Waivers Saves Money for Construction Companies

By Robert Salavdor

January 24, 2020



How The Automation of Lien Waivers Saves Money for Construction Companies

DigiBuild is designed to help owners, contractors, subcontractors and suppliers save money, improve schedules, and lower risk.

DigiBuild has created an automated lien waiver system which makes it virtually impossible for a payment to be made without an appropriate lien waiver or to provide a lien waiver unless a payment is made. 

We also remove all of the labor and overhead costs associated with creating, collecting, and maintaining lien waivers for all parties.

On a year-long project this automation saves companies $14,000 PER YEAR, PER PROJECT, along with lowering risk.

HERE'S HOW IT WORKS:

When the application for payment is created, the DigiBuild platform automatically creates the corresponding conditional waiver.  

After that payment is turned in and approved by the project team, the system automatically reviews the waiver for proper compliance. 

Once the payment is made, the conditional waiver is automatically swapped for an unconditional waiver. There is no need for the payee to do any more work in connection with the lien waiver because the program has done it for them, and it automatically guarantees accuracy.  

The lien waiver is generated concurrently with the payment being made, therefore both sides have the protection of being assured that each will fulfill its respective obligation. 

On the payment side, DigiBuild processes payments and is designed to ensure that no mistakes in calculations can be made, and no claims of missing payments, underpayments or overpayments are possible.  

Often times, when a project finishes, the records of the payer and the payee do not match, leading to disputes and sometimes litigation.  DigiBuild provides an accurate record of all waivers which can be easily accessed or sent to appropriate parties (including legal teams, municipalities, etc..) at all times.

All parties maintain exact identical information because all that information is collected and stored on DigiBuild’s immutable blockchain. 

The automation of lien waivers is one of many ways we can save your company money, speeds up payment processing, reduces risk, and simplify life for your project management teams.

Robert Salavdor

About the author

Founder and CEO of DigiBuild Construction Software. Owner of two commercial construction companies with 20 years in construction. Managed over $500MM in construction projects. Blockchain educator and consultant.

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