Unconditional Waiver / Release Upon Final Payment – Part 5

Unconditional Waiver / Release Upon Final Payment – Part 5

Customers & Accounts Receivable, From Our Guest Bloggers
Once you’ve successfully collected your final payment it’s time to give your customer an “Unconditional Waiver and Release Upon Final Payment” form (#4 release). This release form will not include a “release through date” because it’s the final payment – it releases your lien rights, stop payment rights, etc. for the entire project. If you have suppliers include the same forms from them. Never issue a #4 release form unless you have been successfully paid in full for the entire project.  If you do even though you haven’t been paid and you didn’t allow for the exceptions then the courts wouldn’t side with you because unconditional is unconditional – it’s final. State Requirements For Waiver / Release Forms Each state has specific requirements for release forms, although many states do…
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Conditional Waiver / Release Upon Final Payment – Part 4

Conditional Waiver / Release Upon Final Payment – Part 4

Customers & Accounts Receivable, From Our Guest Bloggers
When it’s time to submit the invoice for the final payment you may need to include a “Conditional Waiver and Release Upon Final Payment” form (#3 release). Usually this release form does not include a “release through date” like the #1 and #2 forms do because it’s your final invoice on the project. If you have suppliers you’ll probably have to include these same forms from them. Once you’ve received payment and it has cleared the issuing financial institution then typically that Conditional Release becomes an Unconditional Release. That means you’ll never be able to file a lien on the project (which is okay as long as you’re paid in full). State Requirements For Waiver / Release Forms Each state has its own requirements for release forms.  Although many are…
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Conditional and Unconditional Lien Waiver/Release Forms for Progress and Final Payments – Part 1

Conditional and Unconditional Lien Waiver/Release Forms for Progress and Final Payments – Part 1

Customers & Accounts Receivable, From Our Guest Bloggers
Knowing which lien waiver/release form to use when on a construction project can be confusing at times.  This series of articles will help to clear up some of the questions. Make Sure The Forms From Your Vendors Are Accurate Whether you’re a general or sub, it is imperative that you make sure the forms you collect from your vendors are legal and accurate – don’t and you’re risking a lien on the property and breaching your contract with your customer. Helpful Tips Photocopy checks before depositing them so that you have the information from the front. This allows you to verify that a check has cleared the issuing bank before you submit an unconditional release. Invariably papers end up misfiled or not filed.  Include your internal job/account number on the…
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