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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Unconditional Waiver / Release Form Upon Progress/Partial Payment – Part 3

Unconditional Waiver / Release Form Upon Progress/Partial Payment – Part 3

Customers & Accounts Receivable, From Our Guest Bloggers
You’ve successfully collected your progress payment and now it’s time to provide your customer with an “Unconditional Waiver and Release Upon Progress Payment” form (#2 release). If you have suppliers include the same forms from them. The #2 release is unconditional which means you’re giving up all lien rights through the “release through date”. Never issue a #2 release form unless you have been successfully paid for that time frame.  If you do even though you haven’t been paid the courts may not side with you because unconditional is unconditional – it’s final. State Requirements For Waiver / Release Forms Each state has specific requirements for release forms. Some states change their laws often (California had three changes to the same lien law in 2004, and then in 2011 and…
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Conditional Waiver/Release Form Upon Progress/Partial Payment – Part 2

Conditional Waiver/Release Form Upon Progress/Partial Payment – Part 2

Customers & Accounts Receivable, From Our Guest Bloggers
When it’s time to submit an invoice for a partial / progress payment you may need to include a “Conditional Waiver and Release Upon Progress Payment” form (#1 release). 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 (#2).  That means you’ll never be able to file a lien for that time frame. State Requirements For Waiver / Release Forms Each state has its own requirements for release forms. California recently changed its mechanic’s lien laws requiring new wording on its release forms.  Keep an eye out for any possible changes in the requirements for the state(s) you work in. Usually a #1 release…
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