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.
This article is an overview of waiver/release forms and is not legal advice. Please contact an attorney in your state with any questions you might have.Continue reading