Knowing when to use progress waivers versus final waivers protects your lien rights while satisfying GC requirements. This guide explains the key differences and when to use each.
Plan Availability
01. Progress Waivers
Progress waivers (also called partial waivers) release lien rights for work completed through a specific date up to a specific amount.
What They Cover
- Work completed through a specific period ending date
- A specific dollar amount (usually matching your pay app)
- Does NOT cover work after the specified date
- Does NOT cover amounts beyond what's specified
When to Use
- With each monthly pay application
- When you receive progress payments
- Throughout the construction phase
Example
| Pay App | Period | Amount | Waiver |
|---|---|---|---|
| #1 | Jan 1-31 | $50,000 | Progress waiver through Jan 31 for $50,000 |
| #2 | Feb 1-28 | $75,000 | Progress waiver through Feb 28 for $75,000 |
| #3 | Mar 1-31 | $60,000 | Progress waiver through Mar 31 for $60,000 |
Cumulative vs. Period
02. Final Waivers
Final waivers release all lien rights for the entire project. They're only used when the project is complete.
What They Cover
- All work performed on the project
- The complete final contract value
- All change orders (approved and included)
- Retainage releases
When to Use
- With your final payment application
- When receiving the last payment
- After all retainage is released
No Going Back
03. Key Differences
| Aspect | Progress Waiver | Final Waiver |
|---|---|---|
| Coverage | Specific period/amount | Entire project |
| Frequency | Each pay application | Once per project |
| Future Work | Rights preserved | All rights released |
| Risk Level | Lower | Higher |
| Timing | During construction | Project completion |
04. Common Mistakes
Using Final Too Early
Don't sign a final waiver until you've received ALL money owed, including retainage. A final waiver before final payment leaves you without recourse.
Wrong Amount on Progress
Progress waivers should match pay application amounts. If the waiver shows a higher amount than you're actually receiving, you're releasing rights for unpaid work.
Missing Progress Waivers
If you haven't been providing progress waivers and the GC requests a final waiver, be careful. You may be releasing rights for amounts you weren't paid.
Track Carefully
05. Retainage and Final Waivers
Retainage release requires careful waiver timing:
At Substantial Completion
If partial retainage is released, you may provide:
- Progress waiver for the retainage amount, OR
- Continue with conditional waivers until full release
At Final Completion
- Submit conditional final waiver with final pay app
- Receive final payment including all retainage
- Issue unconditional final waiver
06. Conditional Final Waivers
A conditional final waiver is a safety mechanism:
- Releases all rights upon receipt of final payment
- Protects you if final payment isn't received
- Submitted with your final pay application
Only sign an unconditional final waiver after payment clears.
07. GC Requirements
Different GCs have different waiver requirements:
Monthly Progress
- Conditional with each pay app
- Unconditional after payment received
Front-Loaded
- Previous month's unconditional with current pay app
- You're always one month behind on unconditional waivers
Final Package
- Conditional final with final pay app
- Unconditional final after receiving final payment
Ask Early
Next Steps
- Learn about state-specific requirements
- See how to generate waivers in RIVET
Need Help?