Our customer is requesting a conditional waiver and release on progress payment. We have not filed a lien or a prelien on the customer. Is a release necessary? What if the customer is requiring a release to make a partial payment?
1 reply
Aug 21, 2021
This is not at all unusual. The Legislature has established four types of statutory waivers and releases forms to be used to waive and release lien, bond and payment rights during and after construction
• Conditional Release upon Progress Payment
• Conditional Release upon Final Payment
• Unconditional Release upon Progress Payment
• Unconditional Release upon Final Payment
A conditional waiver and release is conditioned only upon presentation and payment of the check by the bank upon which it is drawn. Unconditional waivers and releases should be used only when the contractor or material supplier has previously been fully paid by checks which have already cleared or is being paid in cash, cashier's check or wire transfer of funds.
There does not need to be a recorded lien for you to release your lien rights with respect to payments that have been made. Sign the release and get your check.