Filling out a conditional waiver and release on progress payment correctly is crucial for securing your payment rights while acknowledging partial payment for work completed.
A conditional waiver and release on progress payment is a vital legal document, particularly in the construction industry. This document certifies that, upon the successful receipt and clearance of a specified progress payment, you agree to waive your right to file a mechanics lien or make a bond claim for the work completed up to a designated "through date." The "conditional" aspect means that the release of your lien rights is contingent upon the actual and successful processing of the payment. This protects your interests by ensuring your rights are only waived once payment is confirmed.
Key Sections to Complete on a Conditional Progress Payment Waiver
To accurately complete a conditional waiver and release for a progress payment, ensure you have the correct template and follow these steps carefully, focusing on providing precise information for each field:
| Section | Description |
|---|---|
| 1. Name of Claimant | Enter the full legal name of your business or the individual who is providing the services, labor, or materials (the party who will be signing this waiver). This should be your official company name or your legal name if you are an individual contractor. |
| 2. Name of Customer | Provide the full legal name of the entity or individual who directly hired you for the project. This is the party to whom you submitted your invoice and from whom you are directly receiving payment (e.g., the general contractor if you are a subcontractor, or the property owner if you are the prime contractor). |
| 3. Job Location | Clearly specify the physical address or legal description of the construction project site where the work was performed. This ensures the waiver is tied to the correct property and project. Include street number, street name, city, state, and zip code. |
| 4. Owner | Write the full legal name of the property owner for the project. In some cases, this might be the same as the "Name of Customer," but often it is different, especially for subcontractors who are working for a general contractor. |
| 5. Through Date | Indicate the specific date through which all work has been compensated and lien rights are being waived. This date should align precisely with the period covered by the progress payment you are receiving. It is crucial for defining the scope of the lien rights being released; rights for work performed after this date are typically retained. |
| 6. Maker of Check | State the full legal name of the entity or individual who is issuing the payment check. This could be your direct customer, the general contractor, the project owner, or even a joint check issuer. Ensure this name matches the payer on the check. |
| 7. Amount of Check $ | Enter the exact numerical value of the progress payment you are expecting to receive for the work performed up to the specified "Through Date." This amount must precisely match the check you are receiving. |
| 8. Check Payable to | Specify the full legal name of the entity or individual to whom the check should be made payable. In most cases, this will match the "Name of Claimant" (your business name). However, in instances of joint check agreements, there might be multiple payees listed here. Ensure it matches the payee name(s) on the check. |
Important Considerations for Your Waiver
- Accuracy is Paramount: Any errors in names, dates, or amounts can lead to legal complications, potentially invalidating the waiver or inadvertently waiving more rights than intended. Always double-check all information before signing.
- Understanding the "Through Date": This is a critical field as it legally defines the period of work for which lien rights are being waived. It's essential that this date accurately reflects the payment period. You generally retain all lien rights for any work performed after this "Through Date."
- Conditional vs. Unconditional: It's vital to understand the difference between conditional and unconditional waivers. A conditional waiver only becomes legally effective after the specified payment has been successfully received and cleared by your bank. An unconditional waiver, however, is effective immediately upon signing, regardless of whether payment has been received. Always ensure you are signing the correct type of waiver for your situation.
- Jurisdictional Differences: While the core elements of waivers are similar across locations, specific requirements, formatting, and mandatory language can vary significantly by state or jurisdiction. For example, states like California have specific statutory forms that must be used for waivers to be legally valid. For more detailed information on specific state requirements, particularly for California, you can refer to resources such as How a California Conditional Waiver and Release on Progress Payment.
By diligently filling out each section of the conditional waiver and release, you ensure your lien rights are protected until payment is confirmed, contributing to a smoother financial process for your construction project.
