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Do we have to use a customer's custom form for a lien release?

CaliforniaLien ReleasesLien Waivers

Good Afternoon. I have a question about a lien release. Our customer (who is in PA) wants us to fill out THEIR lien release form in order to release payment to us. A conditional upon progress that they made. Does not have the same verbiage as the state form. However, the job is in CA and so are we. My Controller wants to use the standard CA lien release form from the state of CA website. Can our customer force us to use their form?

3 replies

Sep 13, 2019
Good afternoon! Are you a subcontractor, supplier or direct contractor? Does your contract, if any, require you to use the customer's form? Many times, out of state owners and direct contractors insist on other contractors and suppliers signing off on forms they are used to --- which may be unenforceable under California law.  If there is no contractual requirement to give a particular release form, I would stick to my guns and provide a standard California waiver and release form. ----CN
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Sep 13, 2019
Thank you very much.  We are a subcontractor.  I looked in the contract and found a paragraph where it does say they require us to submit, among other items, "Flynn Affadavit and waiver of Liens"- Flynn is our customer's name.
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Sep 13, 2019
I would still only sign their waiver if it is a conditional waiver (conditional upon their payment in full to you clearing the financial institution on which the payment is drawn).
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