In one line
A signed document giving up your right to place a lien on a property, usually exchanged for payment.
Also called a waiver and release of lien.
What it means in practice
On construction work, lien waivers are handed over with each payment. They come in four shapes: conditional or unconditional, partial or final. Conditional means the waiver only takes effect once the payment actually clears.
Sign the conditional version whenever the money has not landed yet. Signing an unconditional waiver before payment gives up your strongest remedy in exchange for a promise.
Example. A conditional partial waiver covers the $5,778 progress payment once the check clears, not before.
Where it shows up on the paperwork
A short signed form exchanged with a payment. It names the property, the amount, and whether the release is conditional on the payment clearing.
What goes wrong
- Signing an unconditional waiver before the money arrives, which gives up your claim for a promise.
- Signing a final waiver when only a progress payment has been made.
- Missing the state's lien deadline while waiting politely for a payment that is not coming.
The tools for this
Related terms
- RetainageA percentage of each progress payment held back by the client until the job is accepted.
- Progress billingInvoicing one job in stages as they are completed, rather than in a single invoice at the end.
- Final invoiceThe last invoice on a job, billing whatever is left after deposits and progress payments.
Common questions
What are the four types of lien waiver?
Conditional partial, unconditional partial, conditional final and unconditional final. Conditional means it only takes effect once the payment clears, which is the version to sign when money has not arrived.
Do I have to sign a lien waiver to get paid?
On construction jobs with a lender or a general contractor, usually yes, with every payment. Read which of the four it is before signing, because they are not interchangeable.