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A public reference institution of the State of North Carolina's law

PUBLISHED

N.C.G.S. § 22B-5

Waiver of liens or claims as a condition of progress payment invalid.

Effective date
2026-08-08
Last verified
2026-08-09
Source
official source
Revision history
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(a) Provisions in lien waivers, releases, construction agreements as defined in G.S. 22B-1(f)(1), or design professional agreements as defined in G.S. 22B-1(f)(5) purporting to require a promisor to submit a waiver or release of liens or claims as a condition of receiving interim or progress payments due from a promisee under a construction agreement or design professional agreement are void and unenforceable unless limited to the specific interim or progress payment actually received by the promisor in exchange for the lien waiver. (b) This section does not apply to the following: (1) Lien waivers or releases for final payments. (2) Agreements to settle and compromise disputed claims after the claim has been identified by the claimant in writing regardless of whether the promisor has initiated a civil action or arbitration proceeding. (2022-1, s. 3(a).)

Reviewed 2026-08-09 · source_verified