General Contractor - Managing Lower Tier Lien Waivers Using the Zero Dollar Waiver Feature

Overview

The Zero Dollar Waiver feature provides added flexibility for managing lower tier lien waivers, even in cases where no payment is due. This helps ensure compliance and documentation completeness throughout the billing cycle, addressing feedback from customers who manage complex subcontractor and vendor relationships. This article outlines how to enable and use this feature in Construction Financials.

Enabling Zero Dollar Waiver Requirements

Description

Project admins can configure invoice requirements to require lien waivers from lower tier vendors, even when there is no payable amount during a billing period. This ensures that documentation is collected consistently for every billing cycle.

Step-by-Step Instructions:

Step 1: Navigate to a specific project.

Step 2: Click on Settings in the project menu.

Step 3: Go to Invoice Requirements.

Step 4: Enable the setting labeled “Require zero dollar waivers.”

Step 5: Click Save to apply changes.

Note: This setting ensures that lower tier lien waivers are collected every billing period, regardless of payment activity.

Creating a Pay Application with Zero Dollar Waivers

Description

After enabling the zero dollar waiver setting, users can proceed with standard billing processes. This section explains how to create a pay application and track waiver submissions.

Step-by-Step Instructions:

Step 1: Navigate to a commitment (e.g., subcontractor or vendor account).

Step 2: Click on the Pay Apps tab.

Step 3: Create a new Pay Application.

Step 4: Enter progress for the billing period.

Step 5: Click Add Payable to add the billing amount—even if it’s $0.

Step 6: Scroll to Lower Tier Requirements.

You’ll now see that lien waivers are required, regardless of the payment amount.

Step 7: Click to Download a filled-out waiver form (with $0 amount pre-filled) if needed.

Step 8: Click Upload to add a signed waiver document.

Note: Once uploaded, the waiver will move through review and approval status as usual.

Uploading Waivers Directly from the Commitment

Description

Users can also upload required lower tier waiver documents directly from the Lower Tier Vendors section in a commitment.

Step-by-Step Instructions:

Step 1: From the commitment, navigate to Lower Tier Vendors.

Step 2: Find the vendor and locate the list of required documents.

Step 3: Click Upload next to the relevant waiver requirement.

Note: This provides a centralized view and control over all lower tier compliance documents for a commitment.

We’re excited to bring this feature to customers who manage lower tier waivers. This enhancement is based on customer feedback and provides better compliance coverage without disrupting billing workflows.