Everybody hates liens. That’s pretty much a proven fact at this point. At the same time, not too many people enjoy exchanging lien waivers, either. Now, GC’s and owners surely love receiving them, but the whole waiver exchange process is a mess.
In states where a statutory form is required, like Arizona, this process is a little less scary. That’s because hidden language is less likely to pop up. Still, it’s best to be sure the right waiver is being used. With that being said, let’s take a look at 1 of the 4 statutory lien waiver forms used in Arizona: the Conditional Waiver for a Final Payment.
Guide to Arizona’s Conditional Lien Waiver for Final Payment
But hold on a sec! Is this the right form for your situation? This waiver is for final payment – as in the last payment on a job. If more payments are expected going forward, this may not be the form for you. Further, if that final payment has been made and the money’s already in the bank, an unconditional waiver could be another option here. Lastly, this waiver is conditional meaning that it is made in anticipation/exchange for payment. Or in other words, getting paid is the “condition.” If that payment isn’t made, then the lien rights aren’t waived. Just a few things to keep in mind. Anyway, let’s look at the Conditional Waiver for Final Payment form itself!
Free Form Template Download: Arizona Conditional Waiver for a Final Payment
Keep in mind: There are 4 different lien waiver forms that may be used in Arizona, depending on the situation. For help with the four different types of lien waivers, you should download this guide:
How to Fill Out the Arizona Conditional Lien Waiver — Final Payment Form
>Project. Identify the project that this lien waiver applies to. Regardless – make sure the project address or location is included in this section.
>Job No. If there’s a project name or nickname, that could be helpful here. A contract number or other identifier for this project would also go in this section.
>Maker of Check. Who’s making payment in exchange for this waiver?
>Amount of Check $______. What’s the amount of that check being exchanged for this waiver? Since this waiver is final, that amount should represent the amount needed to be received to close out the project.
>Payee or Payees of Check. Who’s receiving payment in exchange for this waiver?
>Owner. Who owns the property where work was performed? This section may not be as easy as it seems, so be careful when providing this information.
>Job Description and/or Location. Where is the property where work was provided? Typically, lien waivers don’t really require a legal property description. The property address would probably be fine here – but it can’t hurt to be as specific as possible!
>Person with Whom Undersigned Contracted. Who hired the party submitting this waiver? Or if you’re filling out this waiver on behalf of yourself or your company, how hired you?
>Except for disputed claims in the amount of $______. If there are any amounts that should be excluded from this lien waiver – speak now or forever hold your peace!
>Dated. This should be the date that the waiver is signed.
>Company Name. What’s the name of the company submitting the lien waiver? Make sure to get this exactly right — providing this seemingly easy bit of information can be problematic. You’d never guess that you could get your own company’s name wrong, but it happens!
>By. The signature goes here! But you probably knew that…
>Title. What is the title of the person signing this lien waiver on behalf of their company?
Remember that conditional waivers are safer to use than unconditional waivers because they are only valid when and if you get paid. If it’s at all possible, you should try to use conditional waivers on your projects.