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Are we releasing the whole jobsite or just our customer

ArizonaLien Releases

The Arizona waiver has wording that states for all labor, services, equipment or material furnished to the jobsite or to --------------- . My question is since it is saying to the JOBSITE are we releasing other parties that we may have supplied equipment to on the same project. We have been advised that we should not be signing it with that verbiage as it could release the whole jobsite, not just our customer.

7 replies

Apr 9, 2021

You are correct. 

If you are supplying to more than one contractor on the same job and under the same general contract with the owner, then you should only sign a waiver as to the customer/contractor to whom you supplied materials/equipment for which you have been paid.  

You can simply cross out and initial the portion of the waiver that refers to the jobsite or you can require the contractor to provide you a waiver that has the language omited.

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Apr 9, 2021
Thank you Mr. Potter. So we have a GC who is telling us that we are not allowed to mark out anything on the waiver. When I look at the Revised Statutes it shows this(see below). It does say that verbiage of being supplied to the jobsite or ------ so if we mark thru it & just put that we supplied to XYZ company it would not be thrown out in a court if it came to that? the waiver and release shall follow substantially the following form: Unconditional waiver and release on progress payment Project: _________________ Job No.: _________________ The undersigned has been paid and has received a progress payment in the sum of $_____________ for all labor, services, equipment or material furnished to the jobsite or to ______________________________________________________________ (person with whom undersigned contracted)
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Apr 9, 2021

As you correctly indicate, the statutes require lien waivers (condition and unconditional) to be "substantially" in the form provided in statute. They need not be verbatim. In fact, as evidenced by your original question, it is not in your interest to waive rights that you do not intend to waive (e.g. rights to collect against other subcontractors). 

If I were amending the language provided above, I would simply remove the word "or" between "jobsite" and "to", thus making the waiver apply only to the "labor, services, equipment or material furnished to the jobsite" for the specific subcontractor that was seeking the waiver. That would still reference the particular job/property, but preserve your rights against other contractors on the same jobsite.

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Apr 12, 2021

Thank you! One last question. 

 If we left the verbiage "to the jobsite or to ...." and just added our customers name with ONLY written behind it , or listed the invoices, or check # that paid for the invoices for this project for the time frame requested would that also be ok? 

Thank you for your time in this.

Dawna

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Apr 12, 2021
Dawna - More specificity is always a good thing, because it expressly states what is being released and removes doubt as to whether other items are included. You will likely be ok adding the qualifying language you suggest, so as to not waive lien rights against other contractors.
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Apr 12, 2021

thank you again for your assistance. It is greatly appreciated.

have a wondeful rest of your week.

Dawna

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Apr 12, 2021

Dawna - give me a call and we can talk specifics. 480.939.4884

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