• No payment or other consideration is needed for a mechanic’s lien waiver to be valid.
• The best practice is to assume lien rights can be waived in a contract before any work is performed.
• A pay-if-paid clause can most likely waive lien rights.

Retainage Provisions

Public & Private

• For the maximum rate of retainage is 10 percent of the contract estimate. When more than 50 percent of the work is done, no further funds may be withheld. At 95 percent completion, the state may pay 95 percent of the retained funds to the contractor. Withheld funds are deposited in a North Dakota financial institution with interest accruing to the contractor. N.D. CENT. CODE§§ 43-07-23, 40-22-37. Contracts entered into with the Water District Board are governed by N.D. CENT. CODE§ 61-35-103. Contracts entered into with the North Dakota Mill and Elevator Association are governed by N.D. CENT. CODE§ 54-18-18. In both cases, the maximum rate of retainage remains 10 percent of the contract estimate.