A critical part of the construction payment process is the exchange of lien waivers. Their importance cannot be overstressed. Waiving lien rights means giving up the only leverage a lower-tier party has against a non-paying owner or GC. Prudent contractors should pay close attention when signing a lien waiver.
Nevada regulates the form of lien waivers pretty heavily. In fact, it is one of the 12 states that actually provide statutory lien waiver forms. In order to be a valid waiver, they must contain all the language provided by the statute. If there are any alterations or additional language on the forms, this could result in the waiver being invalid and unenforceable.
The state of Nevada requires the use of one of four different types of lien waivers; this article will show how to properly execute a Nevada conditional final lien waiver form.
Guide to Nevada unconditional lien waivers for progress payments
This type of waiver should be used when the claimant is exchanging the waiver for payment of a progress billing. If there are any future payments expected on a job, progress or (partial) lien waiver is the way to go. These waivers are also unconditional; which means that they are valid and enforceable the second they are signed.
Unconditional waivers should only be used when the claimant has actually received payment. A check in hand doesn’t count, we mean funds actually deposited into an account.
How to fill out this waiver form
This is where the actual project name should be inserted. If there is no designated project name, then a simplified address will be enough. Such as 123 Road St.
The mailing address of the property being improved should be filled in here. A full legal description of the property isn’t necessary.
This is the name of the person you were hired by. Depending on your role, this could be the owner, GC or some other lower-tier party.
Invoice/Payment application number
The number of the invoice or pay application should match up to the lien waiver form in order to ensure what labor or materials are to be covered.
This one is pretty straightforward, this is the amount of money being released in exchange for the lien waiver.
Fill in the date in which the waiver was executed.
Company name, signature & title
Add your name, company name and title in the company, to verify that you are authorized to sign the waiver.