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Am I able to provide a final conditional waiver as a lump sum and not break out with the exceptions?

CaliforniaLien Waivers

I submitted a final billing with a conditional final with the exceptions of what has not been paid with different though periods, but the general wants me to lump sum what is due. Am I able to do so even though I already provided them with the conditional progresses and now the final release with the exceptions.

1 reply

May 14, 2019

That's an interesting question, and I'm glad so much thought is being put into waivers here! Ultimately, it might not matter all that much for a claimant themselves whether amounts appear on a conditional lien waiver in the waived portion (the amount of the waiver) or in the exceptions of that waiver - for the claiamant, lien rights are preserved either way. If in the exceptions, those amounts are excepted from the waiver. If in waived portion, the rights aren't waived unless payment is actually made. However, for a party collecting waivers, exactly where those amounts appear might seem like a substantial difference. For them, if amounts are in the exceptions rather than in the waived portion, then one or more additional waivers may be needed to show that the amounts featured in the exceptions section were actually paid and waived. So, by including all amounts that are owed in one lump sum conditional waiver, the contractor will know that once all of the payments on that waiver are made, no lien rights will remain for that claimant. Granted, the customer should also understand that once full payment has been made, lien rights are automatically extinguished anyway. But, for their peace of mind, it's not uncommon for a customer to want to simplify the waiver process. As long as lien rights are only being conditionally waived, those rights aren't actually waived at all until payment is received. For more information on California lien waivers, these resources will be valuable: (1) California Lien Waiver Forms & Guide – All You Need to Know; (2) Guide To California’s Conditional Lien Waiver — Final Payment [Free Download]; and (3) California Lien Waivers | Common Mistakes & How to Avoid Them.

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