Lower-Tier Conditional Waiver and Release Upon Progress Payment

5 months ago

Why should I sign this waiver when no material has been purchased nor a payment has been secured for a possible future purchase?

Senior Legal Associate Levelset
105 reviews

Whether or not to sign a mechanics lien waiver is ultimately a business decision of the party submitting that waiver. And, in a situation where no work has been performed, no lien rights have arisen – so, submitting a lien waiver might not really do much of anything.

Of course, at the same time, it’s common for a customer to want lien waivers from all of their subs and suppliers. So, it’s not terribly surprising that a customer might request a lien waiver from their supplier even before that supplier has delivered any materials.

In a situation where a waiver has been requested of you, but where you haven’t actually done any work – it might be helpful to reach out to the customer who’s requesting the waiver. They’ll be able to answer any questions about why the waiver has been requested, and they might even be convinced that a waiver is unnecessary.

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