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Policy vs law

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Hi, I am a subcontractor in Texas and I have a GC that wants me to sign an unconditional waiver before I get paid. I refused to sign it and instead offer to send a conditional waiver. They refused since they stated it in their contract and it's their policy to sign unconditional waiver before accepting payment. Also, they stated I can't put a monthly notice on their project. Doesn't the law override their policies?

2 replies

Jun 25, 2020
You are correct, if there is an applicable statute, the law will override whatever policy the GC is attempted to impose. Texas is one of the few states that heavily regulate the form and process of exchanging lien waivers. As for unconditional waivers, 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." Only a Texas conditional lien waiver may be exchanged before payment is made. You should inform the GC of this law, and explain that conditional waivers are just as valid as unconditional, as long as payment is made. For more information, see:  
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Jun 25, 2020
Hello! The short answer to your question is Yes. The actual answer to your problem is "it depends". Conditional vs Unconditional Lien Waiver If he asks you to sign an unconditional lien waiver before you get paid, you are not completely over a barrel if you sign it. He can't very well enforce it as a lien waiver if he doesn't actually pay you. If signing it gets you paid faster, it is definitely worth considering. While there is a statute requiring the use of the proper lien waivers, the reality at the job site is often far more flexible. Monthly Notice Well, that's just untrue. You can give a pre-lien notice to anyone whose project you've worked on that has not paid you. That is the whole purpose of Chapter 53 of the Texas Property Code. Don't be fooled. E. Aaron Cartwright III 214-789-1354 Aaron@EACLawyer.com
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