How do you fire a contractor and avoid a lien?

[Jeremy I.]

BP, I'm working my first flip and it's been an adventure! I've learned a lot and now I need to consider firing my contractor. What documentation do I need to fire my contractor? How do I prevent him or subcontractors from placing a lien? Thanks!

[Sean Pincus]

You need to send them a Change Order form that shows a deduct of their contract amount and scope down to zero or whatever was paid to them at that time for what was completed. They will need to sign off on the Change Order form and also a Lien Waiver Release Form stating they were paid for whatever services they did complete for you.