Construction planning documents and blueprints

The Construction Glossary

Essential construction law terms every contractor and subcontractor should know.

10+ Terms

Essential definitions

3 Categories

Legal, Document & Payment

A-Z Index

Quick search & navigation

Why This Glossary Matters

These terms represent the legal and financial challenges that Fabric solves. Each definition explains the compliance requirement and how our platform automates it.

Construction Lien Law

Lien Waivers

Payment Rights

Quick Jump

C M N P R S

Notice to Owner (NTO)

A formal notice sent by a subcontractor or supplier to a property owner to protect their right to file a lien if they aren't paid. Requirements vary by state, but NTOs typically must be served within a set period of starting work or delivering materials.

How Fabric helps:

We track NTO deadlines automatically to ensure GCs aren't surprised by unrecorded liabilities.

Legal

Statutory Lien Waiver

A legal document where a contractor or supplier gives up their right to place a lien on a property in exchange for payment. Many states provide specific statutory forms for 'Progress' and 'Final' payments.

How Fabric helps:

Our platform generates compliant lien waiver forms automatically during the payment process.

Legal

Conditional vs. Unconditional Release

Conditional Release: A waiver that only becomes valid once the payment has actually cleared the bank. Unconditional Release: A waiver that is valid the moment it is signed, regardless of whether the check clears.

How Fabric helps:

We use a 'Trust Bridge' that ensures the Release is signed but only released to the GC once the funds are guaranteed.

Document

Notice of Commencement (NOC)

A document filed by a property owner in the public records of the county where the project is located. It marks the official start of the project and dictates the priority of any future liens.

How Fabric helps:

GCs can upload the NOC to the project dashboard so all subs have the correct legal information for their filings.

Legal

Claim of Lien

A legal claim against a property title filed by a contractor or sub who has not been paid for labor or materials. Filing deadlines vary by state but typically must be recorded within a set period of the last day of work.

How Fabric helps:

By using our automated payment-for-waiver system, the risk of a Claim of Lien is virtually eliminated.

Document

Sworn Statement of Account

A written request from an owner or GC to a subcontractor asking for a detailed list of all labor and materials provided and any amounts still owed. Failure to provide this within 30 days can result in the loss of lien rights.

How Fabric helps:

Our platform automatically tracks all work and payments, making it easy to generate accurate sworn statements on demand.

Payment

Retainage

A portion of the contract price (usually 5% or 10%) withheld by the general contractor or owner until the project is significantly complete. This ensures the subcontractor finishes the 'punch list.'

How Fabric helps:

Our system tracks retainage separately and triggers a 'Final Release' flow when the retainage is ready for payout.

Legal

Payment Bond

A bond posted by a contractor to guarantee that subcontractors and suppliers will be paid. On bonded projects, lien rights are usually transferred from the property itself to the bond.

How Fabric helps:

For bonded projects, our platform adjusts the compliance workflow to track bond claims instead of property liens.

Legal

Construction Lien Law

State-level statutes that govern construction liens, including requirements for Notices to Owner, Lien Waivers, Claims of Lien, and the rights of contractors, subcontractors, and suppliers. Requirements vary by jurisdiction.

How Fabric helps:

Fabric is built to help automate compliance with construction lien requirements, ensuring every transaction is properly documented.

Payment

Milestone-Based Payment

A payment structure where funds are released upon completion of specific project phases (e.g., 'Foundation Poured', 'Rough-in Complete') rather than on a fixed schedule.

How Fabric helps:

Our platform breaks projects into clear milestones with photo verification, triggering automated payments when work is approved.

Related Resources

Frequently Asked Questions →How Our Platform Works →About Our Approach →

Struggling with manual compliance?

Fabric automates the simultaneous exchange of payment for statutory-compliant waivers.

Knowledge = Compliance

From Terminology to Technology

Now that you understand construction lien law, let our platform automate every compliance requirement so you can focus on building instead of paperwork.

Auto-Generated Documents

Compliance-Ready Documents

Legal Team Reviewed

The Construction Glossary

Essential construction law terms every contractor and subcontractor should know.

10+ Terms

Essential definitions

3 Categories

Legal, Document & Payment

A-Z Index

Quick search & navigation

Why This Glossary Matters

These terms represent the legal and financial challenges that Fabric solves. Each definition explains the compliance requirement and how our platform automates it.

Construction Lien Law

Lien Waivers

Payment Rights

Quick Jump

C M N P R S

Notice to Owner (NTO)

How Fabric helps:

We track NTO deadlines automatically to ensure GCs aren't surprised by unrecorded liabilities.

Legal

Statutory Lien Waiver

How Fabric helps:

Our platform generates compliant lien waiver forms automatically during the payment process.

Legal

Conditional vs. Unconditional Release

How Fabric helps:

We use a 'Trust Bridge' that ensures the Release is signed but only released to the GC once the funds are guaranteed.

Document

Notice of Commencement (NOC)

A document filed by a property owner in the public records of the county where the project is located. It marks the official start of the project and dictates the priority of any future liens.

How Fabric helps:

GCs can upload the NOC to the project dashboard so all subs have the correct legal information for their filings.

Legal

Claim of Lien

How Fabric helps:

By using our automated payment-for-waiver system, the risk of a Claim of Lien is virtually eliminated.

Document

Sworn Statement of Account

How Fabric helps:

Our platform automatically tracks all work and payments, making it easy to generate accurate sworn statements on demand.

Payment

Retainage

A portion of the contract price (usually 5% or 10%) withheld by the general contractor or owner until the project is significantly complete. This ensures the subcontractor finishes the 'punch list.'

How Fabric helps:

Our system tracks retainage separately and triggers a 'Final Release' flow when the retainage is ready for payout.

Legal

Payment Bond

A bond posted by a contractor to guarantee that subcontractors and suppliers will be paid. On bonded projects, lien rights are usually transferred from the property itself to the bond.

How Fabric helps:

For bonded projects, our platform adjusts the compliance workflow to track bond claims instead of property liens.

Legal

Construction Lien Law

How Fabric helps:

Fabric is built to help automate compliance with construction lien requirements, ensuring every transaction is properly documented.

Payment

Milestone-Based Payment

A payment structure where funds are released upon completion of specific project phases (e.g., 'Foundation Poured', 'Rough-in Complete') rather than on a fixed schedule.

How Fabric helps:

Our platform breaks projects into clear milestones with photo verification, triggering automated payments when work is approved.

Related Resources

Frequently Asked Questions →How Our Platform Works →About Our Approach →

Struggling with manual compliance?

Fabric automates the simultaneous exchange of payment for statutory-compliant waivers.

Knowledge = Compliance

From Terminology to Technology

Now that you understand construction lien law, let our platform automate every compliance requirement so you can focus on building instead of paperwork.

Auto-Generated Documents

Compliance-Ready Documents

Legal Team Reviewed