Construction Litigation
Construction Remedies and Security
Conditional waivers take effect only upon actual payment, while unconditional waivers release rights immediately. Waivers may be partial covering progress payments or final covering all work.
Several states prescribe statutory waiver forms.
Alternative Names:
Waiver of Lien, Lien Release
Why it Matters?
Executing an unconditional waiver before payment clears is the error that eliminates lien rights with nothing received, and it happens routinely when waivers are exchanged at closing. Using conditional forms until funds clear is the basic control. Owners requiring waivers from lower-tier subcontractors and suppliers, not just the general contractor, is what actually prevents downstream liens.
Frequently Confused with
Related terms
Frequently asked questions
What is the difference between conditional and unconditional waivers?
How do owners prevent downstream liens?
