What types of waivers and releases are used in construction contracts?

Waivers and releases are a common tool used in construction contracts. Waivers are an agreement between two parties that allows one party to release the other from its obligations or claims. For example, if a contractor fails to complete a project on time, the owner may waive the contractor’s obligation to finish the remaining work. Releases are similar to waivers, except they also release a party from any potential claims or disputes. In North Carolina, the most common waiver and release documents used in construction contracts are the Mutual Release of All Claims and the Waiver of Lien. A Mutual Release of All Claims is an agreement between two or more parties that releases each of them from any and all claims that exist up to the date of the document. The Waiver of Lien releases one party from any claims or liens that may be placed on the construction project or its parts. Other waivers and releases used in construction contracts in North Carolina include the Waiver of Subrogation, the Waiver and Release of Change Orders, and the Waiver of Final Payment. The Waiver of Subrogation is an agreement in which the party waiving its rights agrees to not pursue legal action against the other party in the event of an injury or other damage. The Waiver and Release of Change Orders releases the parties from any claims that may arise due to changes in the terms of the agreement. Lastly, the Waiver of Final Payment releases the contractor from its obligation to make any final payments on the project.

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What types of waivers and releases are used in construction contracts?

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