I have a contractor requesting an conditional waiver with application for payment and then requesting an unconditional waiver on the same amount after payment. Is this normal? Couldn't they come back and state that they paid that same amount twice?
1 reply
Aug 18, 2020
This is rather common practice in the construction industry, but somewhat redundant. Particularly when it comes to progress/interim lien waivers. A conditional waiver is just as valid as an unconditional waiver. The only difference being that it will only be effective upon receipt of funds. The reason I point out progress payment waivers is that they typically include a "through-date," which signifies the value of labor and materials provided up until that date indicated.
As far as final payments are concerned, this is again a slightly unnecessary practice. But again, no particular issue. If your final payment has been satisfied in full, executing a conditional waiver will waive all remaining lien rights. Executing a second, final unconditional waiver is necessary, since you will technically no longer have lien rights to be waived. However, many in the industry see this as an extra safety precaution. It's kind of like wearing suspenders with a belt.
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