A signed waiver of lien serves what purpose?

A signed waiver of lien serves primarily as a confirmation that a party has received payment for the materials provided for a construction project. When a material supplier or subcontractor signs a waiver of lien, they are essentially relinquishing their right to file a lien against a property for the materials supplied, indicating that they have been paid and will not pursue payment further through legal means.

This is essential in the construction industry to ensure that property owners or general contractors are protected from potential liens that could arise from unpaid suppliers or subcontractors. It also facilitates smoother transactions and builds trust between parties, as they can confirm that payments have been settled without ongoing claims for payment.

In this context, the other choices do not align with the function of a waiver of lien. For instance, indicating that a labor bill is due or paid relates more to the services rendered rather than the materials involved. A waiver focuses specifically on the acknowledgment of payment for materials, thus making the correct choice evident.