Which Lien Waiver Should I Sign?
There are four kinds of lien waiver. The right one depends on two things: whether this is the last payment on the job, and whether the money has cleared. Answer both to see which waiver fits.
- Say whether this is a progress payment or the final payment.
- Say where the money is right now.
- Optionally pick your state to see if it uses a required statutory form.
1. Which payment is this waiver for?
2. Where is the money right now?
This is an estimate, not legal advice. Read every waiver before you sign it; the wording controls, not the title.
Save this project in LienWarden. LienWarden tracks the lien deadlines that a waiver doesn’t stop, so the payments still outstanding stay protected. Your first project is free and you can start without an account.
The two questions behind every waiver
| Money not yet cleared | Money cleared | |
|---|---|---|
| Progress payment | Conditional progress waiver | Unconditional progress waiver |
| Final payment | Conditional final waiver | Unconditional final waiver |
Conditional waivers only take effect when the payment they describe actually clears. Unconditional waivers take effect when you sign, whether or not you have been paid. That is why the rule that protects contractors is simple: trade a conditional waiver for a promise of payment, and an unconditional waiver only for money that has already cleared.
Progress waivers cover work through a stated date and leave later work protected. Final waivers give up lien rights for the whole project, so check that every change order and the retainage are paid or listed as exceptions before you sign one.
Statutory forms
California and Texas, among others, set the exact waiver wording in statute, and a waiver that departs from the statutory form may not be enforceable. In other states a waiver is a contract and says whatever its drafter wrote, so read the whole document, not just the title. The lien waiver guide lists the red-flag language to strike.
A waiver doesn't pause your lien deadlines on amounts still unpaid. Keep tracking them with the mechanics lien deadline calculator.
Questions
What is the difference between a conditional and an unconditional lien waiver?
A conditional waiver only takes effect once the payment it describes is received and clears. An unconditional waiver takes effect as soon as you sign it, even if the check later bounces. Sign unconditional waivers only for money already in your account.
When should I sign an unconditional lien waiver?
Only after the payment it covers has cleared your bank. If a general contractor or owner insists on an unconditional waiver before paying, offer the conditional version instead.
What is a final lien waiver?
A waiver of all remaining lien rights on the project, given in exchange for the last payment. Before signing, confirm that retainage and all approved change orders are included in the payment or listed as exceptions.
Does signing a lien waiver stop my lien deadlines?
No. A waiver gives up rights for the amount and period it covers. Deadlines for anything still unpaid keep running from your furnishing dates.