The lien waiver exchange process is crucial to ensuring payment on a construction project. A mechanics lien is powerful leverage to ensure payment. Waiving the right to file a lien shouldn’t be taken lightly, which is why it’s so important to execute the waiver properly.
The state of Nevada is just one of only 12 states that provide statutory lien waivers. Meaning that in order to be valid and enforceable, the waiver must contain the exact language provided in the statute. Any attempt to add terms or modify the form in any way should be avoided. Even something as simple as notarizing the waiver could result in the lien being declared unenforceable.
Nevada provides 4 different statutory lien waiver forms; this post will focus on how to properly fill out the Nevada conditional lien waiver for final payments.
Guide to Nevada conditional lien waivers for final payments
This type of waiver should be used to induce or in exchange for final payment on a project. If there are any payments that may still be coming under the same contract, then a progress waiver is likely the better option. These waivers are also, conditional. The waiver of lien rights will not be effective until payment is transferred.
Conditional waivers are the best type of lien waivers. They better protect the claimant by preserving lien rights until payment is actually received.
How to fill out this waiver form
If the project has a name, go ahead and add this here. If there is no discernable name this can simply be filled in with the address number and street, (i.e. 123 Road St.).
This is where the full address of the improvement should be listed. This doesn’t need to be a legal description of the property, merely the full street address of the project.
This is the name of the person who hired the party signing the lien waiver. Who did the lien claimant contract with on the project?
Invoice/Payment application number
This section should identify which payment application or invoice is being approved in exchange for the lien waiver. Add the number of the invoice or pay app here.
What’s the amount on the check being exchanged for the waiver? Since this is a final waiver, this should represent the remaining contract balance.
This should reference the pay period of the labor or materials provided that the corresponding pay application or invoice covers.
Amount of disputed claims
Since this is a final waiver any unapproved change orders, retainage or disputed payment amounts should be added here.
The date the form was signed.
Company name, signature & title
Easy, this is all the claimant’s information. Use the full company name, your name and your title in the company, to prove you have authority to sign on the company’s behalf.