Exchanging a release for a check – or a check for a release – should be done with careful attention to the wording and meaning behind the document.
Whether you are a general contractor or a subcontractor, what you want to give in a release, and what you want to receive, depends on your position. Generally, when someone is giving you a check, you want to provide as narrow a release as possible, maintaining the ability to come back later to charge for unexecuted change orders or delays. When you’re the one giving the check, obtain as broad a release for as many rights as possible so what you may not have thought of doesn’t come back to bite you.
Alexander Barthet is a board certified construction attorney in Florida and holds a B.S. in mechanical engineering. He manages The Barthet Firm, a ten lawyer construction law firm in Miami, and maintains a construction law blog at www.TheLienZone.com. He can be reached at 305-347-5295 or alex@barthet.com.
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