Conditional lien waiver

A conditional waiver lets the owner or general contractor process your payment knowing the waiver is ready, while protecting you if the money never arrives. If the check bounces or the payment is never made, the waiver has no effect.

Use a conditional progress waiver with each pay request, covering work through the billing date, and a conditional final waiver with your last invoice. Name the exact amount and, where you can, the check number or payment method.

The condition only protects you if it’s clear. Where your state has a statutory form, the form spells out the condition. With a custom form, make sure it says the waiver depends on receiving the payment, and that it doesn’t also give up claims you haven’t been paid for, such as disputed extras.

Once the money clears, the paying party will usually ask for the matching unconditional waiver. Keep a copy of every waiver you sign with the payment it relates to, so you can show which work has been paid for if a dispute comes up later.