Lien Waiver Review Checklist: 5 Mistakes That Cost Contractors Money (Free)

Mistake 1 — Signing an unconditional waiver before the money clears

An unconditional waiver is effective on signature. If the cheque is late, short, or bounces, the rights for that period are already gone.

• Rule: conditional until cleared. Offer a conditional waiver with the cheque; deliver the unconditional only after your bank confirms the funds.
• If the payer insists on unconditional "so we can release the cheque", the answer is a conditional waiver — it protects them the moment the payment clears.
• Confirm clearance with your bank, not with the payer's "it was sent".

Mistake 2 — Through-date or amount that does not match the payment

A waiver "through [date]" for "$[amount]" waives everything up to that date — including work billed but not yet paid, if the date is later than the pay-app period.

• Through-date equals the end of the pay-application period being paid — never "to date" and never the signing date.
• Amount equals the cheque being received, not the invoiced amount if the payer has short-paid.
• Project, owner and property description match your contract and preliminary notice.
• If retention is being withheld, the waiver amount excludes it and the exceptions block says so.

Mistake 3 — Leaving the exceptions block blank

A blank exceptions line means "nothing is excepted". Anything not listed is waived.

• List retention withheld to date.
• List pending change orders and any extras performed but not yet billed or approved.
• List disputed amounts and claims already asserted.
• List unpaid prior invoices if the waiver is for a later period than an earlier unpaid one.

Mistake 4 — Signing a final waiver for a progress payment

A final waiver releases all remaining rights on the project. Payers sometimes send one with a routine progress cheque.

• Read the title and the operative paragraph: "final" or "all claims" language on anything other than closeout is a stop sign.
• Sign a final waiver only when the final payment (including released retention) is being exchanged and every change order is resolved or excepted.
• On closeout, use a conditional final waiver first; unconditional after the final funds clear.

Mistake 5 — Using a non-conforming form in a statutory-form state

Some states mandate specific waiver wording and treat other forms as invalid or as something other than what you intended; other states accept any reasonable form.

• Check whether your project's state prescribes waiver forms in the free 50-state lookup and record it: ____________
• If it does, use the statutory text exactly — including any required notice paragraph and notarisation.
• If a payer sends its own form in a statutory-form state, compare it to the statutory form before signing; strike or replace non-conforming language.
• Never sign a waiver that also releases contract claims, warranty claims or claims against the surety unless you intend to and have been paid for it.

If you are the one collecting waivers (GCs and upper-tier subs)

• Collect a waiver from every tier below you for the same period — your sub's suppliers and rental yards can lien the project even after your sub has signed.
• Match each waiver to the corresponding pay application and cheque number.
• Reject waivers with blank amounts, missing through-dates or unsigned exceptions.
• Keep waivers with the project closeout file; lenders and title companies will ask for them.