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Vermont (VT)

Vermont lien waiver requirements

Vermont voids advance lien waivers and limits sub liens to unpaid contract amounts.

9 V.S.A. Chapter 51 (§§1921–1928)

No. Vermont does not prescribe a specific lien waiver form, so the language in your contract or waiver template controls, as long as it meets the substantive requirements in 9 V.S.A. §1921. A vague waiver, or one missing a required element, can still be challenged later.

The short version

Vermont's contractor's lien statute is 9 V.S.A. Chapter 51, sections 1921 through 1928. The statute does not prescribe a waiver form. It does ban advance waivers: a lien may not be waived before the labor is performed or the materials are furnished, and any clause to that effect is unenforceable. A sub's lien also only reaches the portion of the contract price that's still unpaid when the owner gets notice of the claim.

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At a glance

  • 9 V.S.A. Chapter 51 governs contractor's liens
  • Advance lien waivers are unenforceable by statute
  • Subs' liens reach only the unpaid portion of the contract price
  • No statutory waiver form is required

Vermont's advance-waiver ban

The statute says a lien may not be waived in advance of the time the labor is performed or the materials are furnished, and any provision calling for advance waiver is unenforceable. That language tracks the Delaware and Rhode Island pattern.

What that leaves you is the standard payment-for-waiver structure. Conditional waivers go out with each pay app. Unconditional waivers follow once the check clears. Both are valid because both come after the work, not before.

Why the unpaid-balance rule shapes the timing

A Vermont sub who doesn't have a direct contract with the owner has to give the owner written notice that a lien is being claimed. The sub's lien is then capped at whatever the owner still owes the GC when that notice arrives.

That means as a GC, every payment you make to a sub shrinks the pool a downstream supplier can reach. Unconditional waivers from your subs, dated as soon as their checks clear, protect that math.

What a Vermont waiver has to make obvious

Because Vermont doesn't give you a form, your waiver should clearly state the amount being released, identify the project, be signed by the claimant, and reflect that work has already been done or materials already furnished.

Tie each waiver to a pay app and a check number. That paper trail is what proves the document came after the labor, which is exactly what the statute requires.

Questions

No. 9 V.S.A. Chapter 51 makes advance waivers unenforceable.

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