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Conditional waiver and release upon progress payment

Utah

We are being asked to sign a "Conditional waiver and release upon progress payment" for zero amount due month ending July 31, 2020. This is correct. The customer was invoiced 8/18/20 and has not paid. If we sign this wavier does it put us at risk?

1 reply

Sep 1, 2020
Per The Ultimate Guide to Lien Waivers, lien waivers are an essential document in the construction payment process. The most important thing to know about conditional lien waivers is: "A conditional lien waiver that is signed is only effective upon the occurrence of something else. The “something else” is almost always the actual receipt of payment. In other words, getting paid is the condition — the signor’s lien rights are waived if and only if they actually get paid." Conditional lien waivers are only effective when the "condition" or reception of payment is satisfied. Luckily conditional lien waivers are safer to use than unconditional lien waivers, yet that doesn't mean conditional waivers are harmless. The amount of money or the payment the lien waiver says that you received matters more than the amount of money you actually received.
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