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Conditional and Unconditional Waiver Signing

I filed a notice of furnishing on a project. We are the sub contractor working for the GC. If we sign the waivers (they are requesting both Conditional and Unconditional) does that negate my lien rights?

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Aug 22, 2019

Lien waivers will only waive mechanics lien rights in the amount and through-date indicated on the waiver itself. Ohio is one of the 38 states that don't regulate the specific information that must be included on lien waivers. If working in one of these "unregulated lien waiver states" such as Ohio, it's important to read over the document carefully before signing. There can be additional language included that may result in waiving more than intended. This can include things such as retainage, unapproved change orders, or even waiving certain contractual rights. If ever unsure about a specific provision in a lien waiver, it should be clarified with the requesting party before signing. As for requesting both conditional and unconditional waivers, this is an interesting, but unnecessary practice. As a basic rule, unconditional waivers should only be used when a contractor has payment. That's because they become effective immediately upon signing. On the other hand, conditional waivers should be used when payment is still pending. Called conditional waivers because they will not be valid or effective until the condition (i.e., payment) is met. Once payment is received, the waiver becomes enforceable and is as valid as an unconditional waiver. Therefore, requiring both a conditional and an unconditional lien waiver is a bit redundant. However, as long as the language on the waiver is fair and accurate, there is no harm in executing both. For additional resources: (1) The Ultimate Guide to Lien Waivers, (2) Conditional vs. Unconditional Waivers, & (3) Should You Sign That Lien Waiver.

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Mar 5, 2020

I wanted to follow-up and confirm you’ve been paid on this project matter.

If I can further assist your company with any unpaid invoices, please feel free to call or email. My firm can collect for you even when lien rights have expired or were never pursued.

Mike Ross Miller, Ross & Goldman mross@mrgpartners.com (512)275-6412 Direct https://www.mrgpartners.com/levelset

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