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 full listing of key content covering mechanic's liens, see Mechanic's Lien Resource Kit. For a full listing of key content covering purchasing and selling commercial real estate, see Construction Resource Kit. 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).