Before a contractor can receive a draw or progress payment, what document must all material suppliers and subcontractors sign?

The requirement for material suppliers and subcontractors to sign a lien waiver before a contractor can receive a draw or progress payment serves to protect the interests of the property owner and ensure that all parties are compensated for their work. A lien waiver is a legal document in which a supplier or subcontractor relinquishes their right to place a lien on the property in exchange for payment. By obtaining lien waivers before progress payments, the contractor provides assurance to the owner that the subcontractors and suppliers have been paid for their services and materials. This helps minimize the risk of liens being filed against the property, which could arise if a subcontractor or supplier is not compensated, ultimately protecting the owner from potential legal and financial complications.

Other documents listed, such as the contract agreement, construction permit, and service contract, serve different purposes in the construction process. For instance, a contract agreement outlines the terms between the contractor and client; a construction permit is needed to ensure code compliance for building projects; and a service contract details the specific services to be provided. However, they do not fulfill the specific role of safeguarding against liens associated with unpaid subcontractors or suppliers, making the lien waiver the appropriate document required for progress payments.