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Use this form when the claimant is required to sign a waiver and release in exchange for, or in order to, induce a final payment and the claimant asserts in the waiver that they received the final payment. See the Unconditional Waiver and Release Upon Final Payment form.
Conditional Waiver and Release. This document waives and releases lien, stop payment notice, and payment bond rights the claimant has for labor and service provided, and equipment and material delivered, to the customer on this job through the Through Date of this document.
Lien waivers generally come in two forms: conditional and unconditional. In a nutshell, conditional lien waivers show how much money is owing through a particular date, and unconditional lien waivers show how much money has been paid for work through a particular date.
1. Conditional Lien Waiver. The claimant provides a conditional lien waiver before receiving payment, giving up their right to file a lien once they get paid as agreed. Conditional liens may require full payment for the entire project or partial payments applied to certain dates.
Further, pursuant to Construction Lien Law, Florida Code §713.20(7), this waiver and release is conditional and effective only on the lienor’s receipt of payment from the financial institution on which the following check is drawn:
A conditional lien waiver for partial payment, also known as a “conditional lien release for progress payment,” is a contract used for surrendering a contractor’s right to file a lien on a property in the amount they have already been paid.
Conditional lien waivers provide legal protection for contractors and subcontractors by ensuring they receive payment for their work before releasing any potential lien rights. This helps in streamlining the payment process and avoiding disputes over payment delays.
A conditional lien waiver lists the amount owed during the period, and is effective upon actual receipt of payment. An unconditional lien waiver lists the amount already paid through the waiver’s date and is effective immediately upon signing.
The conditional contractor’s lien release indicates that any existing liens will be released along with the right to make future claims relating to the value of labor or materials furnished for a project, up to the date specified in the document.
Using conditional lien waivers keeps your payment rights secure in construction. When a contractor, client, or hiring party asks for a lien waiver before paying, a conditional release on progress payment or full conditional waiver ensures you maintain leverage.