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Conditional Lien Waiver — Progress Payment
A conditional lien waiver exchanged with each progress payment — the sub waives lien rights for work completed through the payment date, conditioned on the check clearing. Protects GC and property owner.
Conditional waiver language (CONDITIONAL on payment clearing)
Claimant (sub) name and company fields
Job name, property address, and owner name
Through-date (waives lien rights for work through this date only)
Payment amount being exchanged
Exceptions/reserved claims field (for subs who have disputes)
Claimant signature and notarization fields
Unconditional release upgrade notice (for final payment)
Cover letter template for requesting the waiver
Instructions: when to use conditional vs. unconditional
Who This Is For
Every GC making progress payments to subcontractors or material suppliers should collect a conditional lien waiver with each check. Without it, a sub can be paid in full and still file a mechanic's lien on the property if they dispute any portion of payment later. The homeowner holds you responsible for any liens filed — this waiver is your protection.
What Professionals Say
★★★★★
My attorney told me I should be collecting these on every progress payment. This template matches the format he recommended and costs $17 vs. $500 for him to draft it.
— James H., residential builder
★★★★★
Had a supplier file a lien on a homeowner's property even after I paid them. Never again. I collect lien waivers on every check now.
— Renee T., GC and project manager
★★★★★
Clean, professional, and legally sound language. My title company accepts these at closing for projects we financed.
— Frank V., custom home builder
Frequently Asked Questions
What is a conditional lien waiver?
A conditional lien waiver releases the sub's lien rights for work done through a specific date — but only if and when the payment clears. The waiver is void if the check bounces. This protects the GC and property owner while protecting the sub from giving up rights before payment is confirmed.
When do I use a conditional vs. unconditional lien waiver?
Use conditional waivers for all progress payments (the check is in hand but may not have cleared yet). Use unconditional waivers for final payments only (after you have confirmed the funds are in the sub's account). Never use an unconditional waiver in exchange for a check that has not cleared.
Are lien waivers legally required?
Not always required by law — but they are essential best practice. In most states, a sub or supplier who was paid can still file a lien for disputed amounts. Collecting signed lien waivers is the only way to document that payment was received and rights were released.