In this communication, we take a deeper dive into a valuable feature in GCPay that you may not yet be aware of, but could benefit from using! 

The Advantages of Waiver Exchange

There are many benefits to GCPay’s ePayment feature, such as faster processing and safer distribution of funds, but perhaps the biggest is the waiver exchange.

According to a recent Levelset article, these are the three most important things to achieve with a lien waiver policy:

1. Regulate the Form to Keep Things Consistent

Where applicable, establish an accepted, standardized form that can be used for lien waivers. This enables you to save time with a default waiver template.

2. Create a Handling Process

When are lien waivers provided/requested? Who is authorized to review waivers that differ from the default template? Who is authorized to approve them? How are those processes managed? A road map is required to give every lien waiver request consistent treatment.

3. Automate the Waiver Process and Make It Electronic

The quick and easy exchange and management of documents is the biggest obstacle to changing waivers from vehicles of fear and friction to documents that free projects from those concerns. Using lien waiver software can help make the lien waiver exchange process easier and simpler for everyone.

GCPay’s ePayment feature satisfies all three of these best practices by requiring subcontractors to sign an unconditional lien waiver at the time of pay app submission. General contractors can access the document but will not be able to download it until the payment is received by the subcontractor’s bank. The waiver will be watermarked as “unofficial until paid”.

Once the subcontractor receives payment (since the sub enters all bank details into GCPay, the GC no longer must store that sensitive information), GCPay will automatically “unlock” the unconditional waiver and it will become an official document and will be available for download. No longer will a general contractor have to reach out to the subcontractor to collect signed unconditional waivers after payment. For more information on waiver exchange and the overall ePayment feature in GCPay, click the button below.