Mechanics Lien Waiver and Release Forms

The general principles states that no lien waiver and release form shall be binding unless it is duly signed by the claimant. Signing the form will constitute the release of obligation from the owner, the construction lender and the Surety (in the case of a payment bond) from unpaid debts. This form can be signed by the claimant himself or his duly assigned agent or representative.

By law, paying your contractor and getting a release from your prime contractor does not guarantee that other claimants, such as material suppliers and subcontractors are duly paid. Claimants are unpaid persons who can file a lien on your property in lieu of payment for debts.

By law also, to protect the homeowner from swindlers and non-payment of prime contractors, this waiver and release forms were designed and will only be effective if it follow substantially, the forms set forth in the Civil Code sections 8138, 8136, 8134, and 8132. These forms include:

1. Conditional Waiver and Release Upon Progress Payment

This form is used when the claimant is required to sign a waiver and release in exchange for or induce a progress payment, if the claimant has not yet been paid yet. Progress payment releases follow this form to formally confirm partial payment of the scope of work or partial delivery of supplies. Actual payment will confirm the effectiveness of this form which is generally evidenced by check endorsements or signed cash vouchers. This release does not cover all the other items.  (ConditionalWaiverAndReleaseOnProgressPayment)

2. Unconditional Waiver and Release upon Progress Payment

This form on the other hand is used to document a signed waiver and release in exchange for progress payment where the claimant asserts in the waiver that he or she has already received the progress payment. It does not however cover all items undelivered. (UnconditionalWaiverAndReleaseOnProgressPayment)

3. Conditional Waiver and Release upon Final Payment

On final payments, this form is used when the claimant is required to sign a waiver and release in exchange for, or to induce a final payment and payment has not yet been received. It becomes binding if payment is received. Evidence of payment can be demonstrated through:

a. The claimant’s endorsement on a single check or a joint check that has been paid by the bank upon which it was drawn; or

b. Written acknowledgment of payment given by the claimant such as cash vouchers.

(ConditionalWaiverAndReleaseOnFinalPayment)

4. Unconditional Waiver and Release upon Final Payment

This final payment form is used when the claimant is required to sign a waiver and release in exchange for, or to induce a final payment asserting in the waiver that he or she has received the final payment.

Waiver and release forms are actually government forms that formally regulate the format of payments made by homeowners to contractors, material suppliers, laborers and subcontractors. These forms are binding once it is duly signed and supported by evidence of payment. If homeowners strictly follow this lien waiver and release forms, he or she can be assured to remain free from lien claims in the future.

(UnconditionalWaiverAndReleaseOnFinalPayment)