Lien waivers: which one you are signing, and when

A lien waiver looks like routine paperwork, so it often gets signed at the same speed as a delivery ticket. That is where the trouble starts.

Waivers come in two basic kinds, and each can be partial (progress) or final:

• A conditional waiver gives up lien rights only once the payment actually clears.
• An unconditional waiver gives them up as soon as it is signed, whether the money arrives or not.

Signing an unconditional waiver in exchange for a check that has not cleared is the classic mistake. If the check bounces or the payment never shows, the waiver still stands.

Some habits that help on the credit side:

• Match every waiver to a specific payment amount and a through-date. A waiver with a blank or vague through-date can reach further back than you meant.
• Send conditional waivers with the pay app. Swap them for unconditional ones only after the funds have cleared.
• Keep a log of what was waived and through what date for each job. At closeout, that log tells you what lien rights you still hold for unpaid retainage and change orders.
• Check whether the state requires statutory waiver forms. Some states only enforce waivers that follow set wording.

Waiver timing and lien timing are linked. While you are waiting on a payment tied to a conditional waiver, your lien deadline keeps running. It is worth running the job through a lien and notice deadline calculator before agreeing to a long payment promise.

More detail: conditional vs unconditional lien waivers, and a practical process for exchanging waivers without losing track of deadlines.

LienDeadline team. Education notes for construction credit desks, not legal advice.