Conditional Waiver and Release of Lien Rights upon Progress Payment
(Contractor)

Summary

This is a conditional waiver and release of lien rights upon progress payment template that may be used by a construction contractor to waive and release its lien rights in exchange for a progress payment from the owner. This template includes practical guidance and drafting notes. The waiver and release is effective after the check for payment is endorsed by the contractor and paid by the bank on which it is drawn. Best practice is to attach this template to the construction contract as an exhibit and to ensure that the construction contract states that this template must be signed by the contractor upon receipt of a progress payment. This avoids disputes between the owner and the contractor regarding its wording and terms. For a list of key resources covering construction-related tasks for a first-year associate, see First Year Associate Resource Kit: Construction. For a discussion of issues and tasks commonly encountered by in-house lawyers and counsel working on construction-related matters, see In-House Construction Resource Kit. For a full listing of key content covering mechanic's liens, see Mechanic's Lien Resource Kit. For information on the construction process, see Construction Resource Kit. For a list of key resources covering construction-related tasks for a junior associate, see Junior Associate Resource Kit: Construction. For a conditional waiver and release of lien rights upon final payment template, see Conditional Waiver and Release of Lien Rights upon Final Payment (Contractor).