By The AR Agent team · · 7 min read
A lien waiver is a document in which a contractor, subcontractor or supplier gives up some or all of its right to file a mechanics lien on a property, usually in exchange for a payment. The safe rule: sign conditional waivers before you are paid, and unconditional waivers only once the money has cleared.
This page is general information about US practice, not legal advice. Lien law is set by each state.
A mechanics lien is a claim against a property by someone who improved it and was not paid. A lien waiver (or "waiver and release") is the document that gives that right up. Owners, lenders and general contractors collect them so they can show that everyone who worked on the job has been paid up to a point. Without them, an owner could pay the general contractor in full and still face a lien from an unpaid subcontractor.
A conditional waiver only takes effect when you receive the payment it describes. An unconditional waiver is effective once signed and delivered. A progress waiver covers work through a stated date. A final waiver covers the whole job.
| Type | What it releases | When to sign |
|---|---|---|
| Conditional, progress | Lien rights through a stated date, once the stated payment is received | With your pay application, before payment |
| Unconditional, progress | Lien rights through a stated date, effective immediately | After the progress payment has cleared |
| Conditional, final | All lien rights for the job, once the final payment is received | With your final invoice or retainage request |
| Unconditional, final | All lien rights for the job, effective immediately | After the final payment has cleared |
California's Civil Code sets out one form for each of these, in sections 8132 (conditional, progress), 8134 (unconditional, progress), 8136 (conditional, final) and 8138 (unconditional, final). Texas Property Code 53.284 sets out the same four.
Say a subcontractor bills $40,000 and the general contractor wants a waiver before paying.
Check the "through date" and amount on every waiver. List any exceptions, such as retainage still held or unpaid extras. California's conditional progress form has space for these.
It works whether you were paid or not. California's unconditional progress form carries a notice to the claimant that the document is enforceable against you if you sign it, "even if you have not been paid." The Texas unconditional forms carry a similar notice, and tell anyone who has not been paid to use a conditional form instead.
If you sign one and the payment never clears, you may have given up your lien rights for that amount and be left with an ordinary unpaid invoice.
Conditional waivers protect both sides: the payer gets a waiver that switches on when it pays, and you keep your rights until then. Under California Civil Code 8124 and Texas Property Code 53.281, a conditional waiver only releases lien rights if there is evidence of payment to the claimant.
Some states set out the exact wording. A few examples:
If a general contractor sends its own form, compare it with the statute and the payment you are receiving before signing.
The waiver is often a condition of payment, which makes it a common blocker:
When a payment is late, ask directly whether anything is missing, and fix it the same day:
Subject: Pay application [Number] - [Project name] - waiver attached
Hi [First name],
Pay application [Number] for [Amount], covering work through
[Through date], was due for payment on [Due date].
I have attached our conditional waiver and release on progress
payment for that amount and period. We will send the unconditional
waiver as soon as the payment has cleared.
Is anything else holding this up? If so, we will send it today.
Thanks,
[Your name]
[Company name]
For the stages after that, our past due invoice email templates and the guide to how to collect unpaid invoices set out the escalation steps.
The terms overlap and are often used interchangeably. California and Texas both use "waiver and release" in the names of their statutory forms.
In some states, an advance waiver is not enforceable. Florida Statutes 713.20, for example, says a right to claim a lien may not be waived in advance. Rules differ by state, so check before signing anything that waives rights for work not yet done.
California's form names the claimant, customer, job location, owner, the through date, the payment amount and any exceptions, such as retentions or unpaid extras. If your state has a statutory form, use it.
Speak to a construction attorney in the project's state quickly. You may have released your lien rights for that amount, but the invoice can still be owed under your contract. Keep chasing it in writing.
It depends on the state. Florida Statutes 713.20 says a person may not require a lienor to furnish a waiver that is different from the statutory forms. In California and Texas, a waiver only works as a release if it substantially follows the statutory form.
The AR Agent follows up overdue invoices by email, using the due dates in QuickBooks or Xero. It reads what customers write back. If a general contractor replies that a payment is waiting on a lien waiver, the wrong form, or a missing document, it identifies that blocker and brings it to your team instead of sending another reminder. When a reply says "it will go out once we have the waiver", that can become a tracked payment promise with a follow-up if the date passes. If a reply needs judgement, it asks a person. Every email, promise and blocker is kept on the customer's record.
Talk to us: our AI agent chases your invoices until you are paid.
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