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Is it illegal for a GC to require an unconditional lien waiver when we have not received their check?

TexasLien Waivers

A GC is requiring us to sign an unconditional waiver before releasing a check to us. We are at an impasse - I don't want to provide the waiver, and they won't pay us without it. I'm happy to provide a conditional waiver, but they will not accept that. I know it is not smart to sign the unconditional waiver before receipt of the check, but is it technically illegal (in Texas) for them to require it? Thanks.

2 replies

Jul 7, 2020

You are correct. Under Tex. Prop Code §53,283, "A person may not require a claimant or potential claimant to execute an unconditional waiver and release for a progress payment or final payment amount unless the claimant or potential claimant received payment in that amount in good and sufficient funds." Furthermore, the Texas lien waiver rules are strictly enforced. Providing a letter citing this statute, along with an executed conditional lien waiver may be enough to get the ball rolling on your payments. This article may also prove useful: Texas Lien Waiver Forms & Guide | All You Need to Know Good luck!

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Jul 7, 2020

Thank you!

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