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Conditional progress

Conditional waiver and release on progress payment

Releases lien rights through a specific date, only after the payment clears.

Send this waiverHow the four types compare

What this form does

The conditional progress waiver is the form you send with every pay app, before the check clears. It releases the claimant's lien rights for work done through a through-date, but only on the condition the payment described actually arrives. If the check bounces or the funds reverse, the waiver has no effect and the claimant keeps their lien rights.

When to use it

Send this with every progress pay app, before you cut the check. It's the safest pattern for both you and the sub: you get a signed waiver in the file, the sub doesn't give up lien rights until the money has actually moved.

In states that prescribe the form (California §8132, Texas §53.284(b), Florida §713.20, Arizona §33-1008), substantial conformance is required. Don't draft your own version. Use the statutory text for that state.

Sample wording

Paraphrased for clarity. State-specific statutory text is filled in automatically when you pick the project's state.

Upon receipt by the undersigned of a check from [customer] in the sum of [amount] payable to [claimant], and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document shall become effective to release any mechanic's lien, stop payment notice, or bond right the undersigned has on the job of [owner] located at [project].

What the form holds back

  • Disputed claims
  • Contract retentions
  • Extras not yet billed
  • Items already covered by a prior unconditional waiver

Questions

Is this safe to send before payment?

Yes. The release is conditional on the payment clearing. If the check bounces or the funds reverse, the waiver has no effect.

Does the conditional progress waiver release retainage?

No. The standard form carves out contract retentions. Retainage is released by a separate waiver tied to its own payment.

The other three forms

Unconditional progressUnconditional waiver and release on progress paymentReadConditional finalConditional waiver and release on final paymentReadUnconditional finalUnconditional waiver and release on final paymentRead

Send the right waiver in two minutes.

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