Oct 30

Unconditional Lien Waiver on Progress Payment

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What is Unconditional Lien Waiver on Progress Payment?



Unlike a conditional waiver of progress payment, the unconditional waiver of progress payment does not guarantee you a payment for the services extended by you towards your client as it releases your liability rights to the property as soon as you sign it. It does not matter any longer whether you receive the payment by the through date mentioned on the form. The form itself mentions something to the tune that if you do not receive the payment by the through date mentioned then it is not anybody’s responsibility and that you should get a conditional waiver and release on a progress report form.

How is it different from conditional waiver on progress payment?

The only difference between the conditional waiver of progress payment and unconditional waiver on progress payment form format is that in the financial institution detail section of the unconditional waiver, you only need to fill up the amount that you are expected to receive. The firm also does not provide any space for claims for unpaid waivers unlike in the conditional waiver on a progress payment form. The unconditional waiver of progress payment will release the claimant’s right from the property of the client as soon as it is signed and will remain released despite non-payment of the full amount by the through date. Basically the unconditional waiver of progress payment will free the client from any stipulations and should not be signed unless and until the claimant trusts the client on payments from the past projects that were worked on together with them.  This is almost like confirming that you have received the payment for the work done and are required to relinquish rights to the property even before you get the money for the work done. The conditional waiver of progress payment at least ensures payment by the through date mentioned on form even if it waives the right of the claimants to the property as soon as they sign it.

When to use it?

The general advice is to never go for the unconditional waiver of progress payment as it does not protect the interest of the claimant. The waiver works to the advantage of the owner as he can make the payment to the claimant at whatever time he wishes to depend upon his/her financial situation. In cases like these where there is enough confidence in the client that the payment will come through eventually and there is no need to necessarily make him/her liable for unfulfilled payment through a specific date then this is a safe waiver to sign.

Oct 30

Conditional Lien Waiver on Progress Payment

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What is a Conditional Lien Waiver on Progress Payment?


A lien waiver is a document developed to protect the interest of the people who provide with materials, labor and other services for the completion of a construction project. The claimant, who is the person or a group of people who provided the materials, labor and other significant services specific to the project sign the waiver stating that they have received the payment for the work executed by them and that they waive any liability rights to the property of the owner. The payment is generally done in a progressive manner requiring no checks to be returned or be stopped. There are four types of waivers; one is a conditional waiver of progress payment, another is an unconditional waiver of progress payment, similarly the next two are: conditional waiver of final payment and unconditional waiver of final payment.

How it works?

Conditional Lien Waiver on Progress PaymentOut of all of these, the conditional waiver of progress payment is considered to be the safest waiver as it will release all claimants’ rights through a specific date, mentioned on the form as “Through Date’’, provided all the payments are cleared by the date that is mentioned.  A conditional waiver and release on a progress payment form will incorporate the following details: The name of the claimant, the name of the customer, the job location, owner and the through date in the part of the form which deals with identifying information. The next part of the form will ask the owner to fill in the details of the financial institution like the name of the bank at which the check was drawn, the amount the check is worth and the name of the person or organization to whom the check is payable to. Furthermore the next section could ask you the details of other waivers for which you haven’t received payment yet. They ask you to fill out the through date of the waivers and the exact amount to be paid. The last section will deal with the claimant’s signature, his/her title and the date of signature.

What are its advantages?

This form will help you get payment for your services extended with surety as the through date set will ensure that the property built by your efforts is not released readily to its owner. The form is beneficial for all claimants as the fear of non-release of property is a strong one as far as the owner is concerned, he is very likely to give the money asked of him in the very beginning of the project readily to safeguard his interests. This document becomes more of a binding one that prevents anyone to default and be tied up in any sort of litigation.

Oct 30

Lien Waiver

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What is Lien Waiver?


We need a lien waiver because it relinquishes a business or person’s right to put a lien on the assists of another person or party. Contractors and mechanics often use lien waivers and these are signed by the customers that have had contractor or mechanical work done where the bill has been paid in full. If there’s no waiver the mechanic or contractor can take their supplies back and is able to place a lien on the property if the customer hasn’t paid in full as they agreed to. The lien waiver is given once the customer has paid in full for the work that they requested.

Lien WaiverWhen a contractor or a mechanic does work they put themselves at risk because the customer may make late payments so they may not pay at all. The lien protects the contract or mechanic against any type of non-payment. The lien waiver certifies that the customer has paid in full and that the contractor can’t make any claims. The contractor can make claims if the customer hasn’t paid in full because there’s no lien waiver given. The customer needs to know that the contractor can put liens on their property if the work isn’t paid for. Once the work is paid for the waiver will let them know that the work is complete and that the contractor can no longer put a lien on the property.

The waiver assures all parties such as a mechanic, contractor, supplier, and so on that the work is complete and paid for. If a contractor is getting paid in installments for example, and the customer doesn’t pay, the contractor could take heavy losses due to the cost of their supplies. With a lien, they can get this money back. If the work is completed and the customer pays in full they can supply a waiver for the customer to assure the customer that no lien can be placed on their property. The lien protects the contractor, and the lien waiver protects the customer.

The contractor should supply the lien waiver to the customer once the bills are paid or the customer should ask for a lien waiver so there’s no possibility of the contractor placing a lien on work that has been paid for by the customer. If the customer knows ahead of time that a lien can be put on their property if no payments are made that customer is going to be more willing to make the payments required for the work that you do.

As a contractor or a mechanic you need the lien waiver for your customer. You can assure them that the waiver will be given once they have paid you in full for the work that you have both agreed to. This waiver protects the customer while the lien protects you. You should only give the waiver once you are satisfied that everything has been paid for. As the customer you should get this waiver right away once you have paid for the work so there’s no chance of claims being brought against you falsely.

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