1. Home
  2. >>
  3. Forms, Documents, & Articles
  4. >>
  5. Mechanic's Lien Waiver

Mechanics Lien Waiver

By Diane Dennis

What is a mechanics lien waiver?

When you invoice, and/or get paid, on a construction project you'll almost always be required to provide a mechanics lien waiver, also commonly known as a "lien waiver form" and "lien release form".

There are typically four lien waivers in the series. The length of your project, how long it takes to complete it, will determine which of the four you'll use, and how often.

The ultimate goal of these documents is to allow you to incrementally release your lien rights on a construction project, as you get paid.

When you get paid you'll submit an unconditional mechanics lien waiver for that dollar amount. Using the "Progress" and/or "Unconditional" mechanics lien waiver rest of your lien rights remain protected while your customer is able to pay you on your invoice knowing that the portion of his property he's paying/paid for is now protected from liens.

A rundown of the individual mechanics lien waivers

The Conditional Waiver and Release Upon Progress Payment form is used when submitting your first invoice on a project that's lasting longer than one billing period.

When using this document, also known as the #1 lien waiver form/lien release form, if not careful you can inadvertently release 100% of your lien rights with this document, even without full payment, and have no recourse in regard to filing a mechanics lien.

The Unconditional Waiver and Release Upon Progress Payment form is used when you've been paid on a progress invoice on a project that lasts longer than one billing period.

Also known as the #2 lien waiver form/lien release form, this document is designed to release portions of your lien rights as you get paid on the project *but* as with the #1, if you're not careful you could release 100% of your lien rights with no hopes of ever being paid.

When it comes to safeguarding your payments on a construction project, construction lien waiver forms are great *unless* you make a mistake on the document - at which point you could be looking at your worst nightmare.

The Conditional Waiver and Release Upon Final Payment form is used only when you're submitting your final invoice on a project. If you're invoicing only once on a project then you won't use the #1 form because, while it is your first invoice on the project it's also your *final* invoice on the project.

If you use this document, also known as the #3 lien waiver form/lien release form, when you should be using a #1 instead yet again your lien rights, and rights to payment, are in danger.

The Unconditional Waiver and Release Upon Final Payment form is used when you're collecting the final payment on the project.

When you use this document, also known as the #4 lien waiver form/lien release form, you do indeed release all of your lien rights on the project. Use this form *only* after receiving final payment on a project.

Who submits a mechanics lien waiver, and to who?

Any entity working on a construction project that has lien rights will undoubtedly be required to submit mechanics lien waivers.

You'll always submit them with your invoices, to your customer(s).

Typically every supplier, subcontractor, and direct contractor will submit lien waiver/release forms to their respective customers.

$14.95
Mechanics Lien Waiver Release Forms
Word and PDF

  • Instant Download
  • Unlimited Usage
  • Unlimited Free Replacement
  • Unlimited Free Support
  • Save-able
  • Bonus! Learn exactly how to use which mechanics lien waiver to use when with the included in-depth article. You'll be a PRO in no time!
    Construction-Business-Forms.com

Article Series: Mechanics Lien Waivers


Mechanics Lien Waiver

Learn exactly which mechanics lien waiver to use when


Invalid Labor Release Forms

  • Top 10 Reasons Why You CANNOT Blindly Trust Labor Release Forms

Fraudulent Lien Waiver Forms

  • Fraudulent Lien Waiver Release Forms Could Very Well Cost You Your Business - And A Whole Lot More!

What's the "Release Through Date"?

  • *The date through which you're releasing your lien rights - a mistake of just one day can mean disaster

Credit Card Payment Canceled - Will You Lose Your Rights, and Your Payment?

  • *Your customer cancels his CC payment *after* you issued the unconditional final. What happens next?




Customer Feedback

"What a wonderful service you provide. I thank you for your courtesy and promptness." ~ Stephen Wolff

"I have added InformedContractors to my favorites. I will continue to use them. They have been the biggest help to me!" ~ Tracy Tolmich

"What a wonderfully pleasant surprise to see someone actually take the time to respond to e-mail questions. Living in L.A. people like you are a rarity! Thank you again for your prompt e-mail!" ~ Lisa


This article is written by Diane Dennis, webmistress of www.InformedContractors.com.

New! Comments

Please leave me your comments below. Facebook doesn't notify me of comments but I'm tickled when I come across them and I always respond when I see them.