Lien waivers are vital to the construction payment process. Although at its core they act as mere receipts for payment, these are actually mini contracts. One party agrees to pay, while another party agrees to give up lien rights. This is why understanding the lien waiver forms is so important.
Particularly in Nevada, because it is just one of the 12 states that provide statutory lien waiver forms. So in order to validly waive lien rights, these waivers must be in “substantially the same form as provided.” This leaves little room for modifications if any. Additions of modifications to the statutory waiver forms could potentially render the entire waiver invalid.
The Nevada statute provides 4 different types of lien waiver forms; this post will explain how to properly execute a Nevada conditional lien waiver for progress payments.
Guide to Nevada conditional lien waivers for progress payments
Let’s get the obvious out of the way. This waiver is meant to be exchanged for progress payments. These are the smaller, installment payments that are released throughout the lifespan of the construction project. This waiver is also a conditional one, meaning that the waiver won’t be valid and enforceable unless a certain condition is met; that condition being payment.
Conditional waivers are the best type of lien waivers. They help ensure that the right to file a mechanics lien isn’t lost before payment is actually received.
How to fill out this waiver form
Some projects use a specific “project name” which will most likely be in the contract documents. If there isn’t a designated name, as simple address number and street will be sufficient, i.e., 123 Road St.
Add the project address here. The full street address is enough, there is no need for a full legal description.
Who hired you? This doesn’t necessarily mean the owner, unless you are a direct contractor. This is just the party you have contracted with.
Invoice/Payment application number
The invoice or pay application is an important addition, as it provides a reference to the work that was performed.
This is the amount of payment that is to be received in exchange for this specific progress waiver.
Add the date that the lien waiver form was executed
Company name, signature & title
To ensure that you can act on the company’s behalf, add all your relevant information such as your full name, title, and company name.