If I have finished a job and received a partial payment should I sign a unconditional waiver for progressive payment
1 reply
Mar 12, 2020
Knowing when to submit a lien waiver and what type of waiver to exchange can be a struggle. As you likely know, unconditional lien waivers should be reserved for situations when payment is in hand. And, progress lien waivers are designed for situations where additional payment is expected on the job.
Texas' requirements for unconditional progress lien waivers can be found at § 53.284(c) of the Texas Property Code. On the waiver created by that section, there's an opportunity to identify the dollar amount for lien rights being waived, and the waiver also instructs submitters to attach documentation identifying exactly what lien rights are being waived. Further, lien rights are reserved for "unpaid retention, pending modifications, or other items furnished." So, if there are rights that shouldn't be waived, the claimant has an opportunity to make sure the waiver reflects that, and there are some catchall provisions which help there too.
As for whether you should provide an unconditional progress lien waiver - ultimately, that's a business decision that every Texas construction business will have to make on their own terms. But, if the waiver is drafted with care and contains attachments clearly displaying what rights are being waived and what rights aren't, then there shouldn't be much risk in providing an unconditional progress lien waiver for partial payment.