Tagged: 

How can I provide a lien waiver for a specific month, when the previous months are still owed

2 weeks ago

Customer wants the conditional progress to be starting 6/1/19 and through 6/30/19, to include only a June invoice, none of the April or May that are still outstanding. Is this possible? Thank you!

Senior Legal Associate Levelset

California lien waivers actually have an “Exceptions” section built right into the waiver form. So, when executing a lien waiver for one month where payment still hasn’t been made in some other month, it’s generally possible to include the unpaid previous month as an “Exception” in a new waiver.

Specifically, section (3) of the Exceptions section reads:

(3) The following progress payments for which the claimant has previously given a conditional waiver and release but has not received payment:

Date(s) of waiver and release:

Amount(s) of unpaid progress payment(s): $________

So, if there are prior progress payments for which a waiver has been exchanged, but which have also not been paid, then those amounts should be identified by both the dates of the previously given conditional waivers and the amounts owed for those prior progress payments.

Further, under section (4) of that Exceptions section, a claimant’s conditional progress waiver does not waive rights for “(B) the right to recover compensation for work not compensated by the payment.” Presumably, that means that payments unrelated to this waiver won’t be waived simply because payment is made for this waiver.

So, ultimately, California seems to provide a number of ways to avoid waiving lien rights for prior progress payments that haven’t actually been received.

For more info on California lien waivers, here are two great resources:
(1) California Lien Waivers Guide and FAQs
(2) California Lien Waiver Forms & Guide – All You Need to Know

Hope this has been helpful!

Your answer or comment:
Are you a Registered Expert?
You are not logged in and will be posting
anonymously. Log in Now