Lien waivers come in different types that serve different purposes. Understanding the differences is crucial for protecting your lien rights while meeting GC requirements.
01. Two Dimensions of Lien Waivers
Lien waivers are classified along two dimensions:
- Timing - Conditional vs. Unconditional
- Scope - Progress (Partial) vs. Final
This creates four main types of lien waivers:
| Conditional | Unconditional | |
|---|---|---|
| Progress | Conditional Waiver - Progress Payment | Unconditional Waiver - Progress Payment |
| Final | Conditional Waiver - Final Payment | Unconditional Waiver - Final Payment |
02. Conditional Waivers
A conditional waiver releases your lien rights only upon receipt of payment. If the check bounces or payment doesn't arrive, your lien rights remain intact.
When to Use
- When submitting a pay application
- When you haven't received payment yet
- As part of your billing package
Key Language
Conditional waivers contain language like:
"Upon receipt of payment in the sum of $X, the undersigned waives and releases any mechanic's lien..."
Safe to Sign
03. Unconditional Waivers
An unconditional waiver immediately releases your lien rights, regardless of whether you've actually received payment.
When to Use
- After you've received and deposited payment
- After the check has cleared
- When required to receive the next payment
Key Language
Unconditional waivers contain language like:
"The undersigned has been paid and hereby waives and releases any mechanic's lien..."
Dangerous if Unpaid
04. Progress (Partial) Waivers
Progress waivers cover work through a specific billing period, not the entire project.
Coverage
- Work completed through a specific date
- A specific dollar amount
- Does not release rights for future work
Typical Use
One progress waiver per pay application, matching the billing period and amount.
05. Final Waivers
Final waivers cover the entire project and release all lien rights.
Coverage
- All work on the project
- All amounts owed
- Complete release of lien rights
When to Use
- With your final pay application
- Upon project completion
- When receiving final payment including retainage
Double Check
06. Typical Waiver Workflow
With Each Pay Application
- Submit Conditional Progress Waiver with your pay app
- GC reviews and approves pay app
- You receive payment
- Submit Unconditional Progress Waiver confirming receipt
- Repeat for each billing period
At Project Completion
- Submit Conditional Final Waiver with final pay app
- Receive final payment including retainage
- Submit Unconditional Final Waiver
07. Waiver Amounts
Each waiver specifies a dollar amount:
Progress Waiver Amounts
- "Through" Date - Work completed through this date
- Amount - The billing amount for this period
Final Waiver Amounts
- Total Contract Value - Final contract sum
- Covers all amounts, including change orders
Match Pay App
08. Generating Waivers in RIVET
Plan Availability
RIVET generates the appropriate waiver type based on context:
- With pay app submission: Conditional Progress
- After payment received: Unconditional Progress
- With final pay app: Conditional Final
- After final payment: Unconditional Final
All waivers use the correct state-specific forms where required.
Next Steps
- Learn about progress vs. final waivers
- Understand state-specific requirements
Need Help?