Securing payment can cause some headaches for those performing construction work in Texas. With a flurry of deadlines and specific notice requirements, it can be a lot to handle. Luckily, when payments have been made, Texas makes lien waivers easy. The Texas Property Code contains 4 statutory lien waiver forms that make life a little bit easier.
This article is about one of those four available waiver forms, the Unconditional Lien Waiver on a Progress (also known as a “Partial”) Payment. Please read on as we break it down for you.
Table of Contents
Guide to the Texas Unconditional Lien Waiver — Progress Payment Form
Let’s take a step back before digging into the details and ask: Is this form right for your situation?
As the form name indicates, a progress or partial unconditional waiver unconditionally waives a portion of lien rights on the project. If you’re attempting to waive all lien rights to a project or if you’d like your waiver to remain conditioned upon payment, one of the other Texas forms may be right for you.
However, if you’ve received a progress payment and that money is in the bank, a Progress (or Partial) Unconditional Waiver might be appropriate.
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How to Fill Out the Texas Unconditional Lien Waiver — Progress Payment Form
> Notice. Just like the Final Unconditional Notice, the Texas Property requires certain notice language at the top of this form. There’s really no wiggle room here. The required language is set out by statute, and it must appear at the top of the document, printed in bold type at least as large as the largest type used in the document, but not smaller than 10-point type.
> Project. Which job is this waiver for? A project name or nickname should suffice, but being as specific as possible is a good rule of thumb. Use whatever is more official – and more correct!
> Job No. What’s the job number for this project?
> Sum of $. Be careful! Since this is a partial waiver (or a waiver upon progress payment), only include the amount that is to be waived. Any amount included in this field will be waived – regardless of intent and regardless of whether payment has actually been made. Due to the risks here, we prefer to use the Partial Conditional Lien Waiver wherever possible.
> Person with whom signer contracted. This one’s easy – Who hired you?
> Owner. This one’s pretty easy too. Who owns the project property where lien rights are being waived? Keep in mind, answering this question can get tricky when there’s a developer or apartment/condominium involved. Check out this post: How to Find the Property Owner on a Construction Project.
> Location. Where is the project located? Be sure to give a street address and to include the county and zip code. Any other identifiers could also be helpful.
> Job description. This field is included in the other Texas lien waiver forms, but getting it right on a Partial Unconditional Waiver might be the most important. Here, a claimant should describe the work for which lien rights are being waived. Typically, the more specific, the better.
> Signature. That’d be your John Hancock.
> Date. This should be the date the document is signed.
> Company Name. What company or organization do you work for?
> By (w/ title). Print your name and position title, please!
REMEMBER — There are four different types of lien waiver forms, and the CONDITIONAL waivers are the safest to use. Be extremely careful when using an unconditional lien waiver (such as the one described here in this article), as you may unintentionally give up your right to get paid before you actually get the cash in hand.
For help with the four different types of lien waivers and when to use each, you should download this guide: