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I have two different project numbers for the same project. Can I issue an Unconditional waiver for one of the jobs that has been paid, even though the other has not?

CaliforniaLien Waivers

I have two different project numbers for the same project. Can I issue an Unconditional waiver for one of the jobs that has been paid, even though the other has not? I issued a waiver for one of the jobs, that then was paid. He is requesting a Unconditional Waiver for that paid job. But, I have a second project number that is the same customer po and project location. If I request an Unconditional Waiver for Project A, does that carry over to Project B? Even though I have issued two separate Prelim's for each?

1 reply

Sep 18, 2018

It's appropriate to be cautious using unconditional waivers - since they are unconditional, it doesn't really matter in many cases whether the payment has actually been made or not, it just matters what the waiver says.

That being said, an unconditional waiver can be used once payment has been received. In a situation in which there are multiple projects with multiple preliminary notices but that happen to be occurring on the same property with the same property owner and GC, specifying the job to which a lien waiver relates can be tough. It is likely best practice in such a situation for the waiving party to take the following steps:

1. include the project number to which the waiver relates specifically on the waiver;
2. make sure that even if the waiver is unconditional that it is not a "final" waiver for all work done on the specific property;
3. include relevant information regarding the amounts still due under the other project number for work done on the same property in the "exceptions" portion of the waiver form.

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