Lien waiver

A lien waiver is a signed statement in which a contractor, subcontractor or supplier gives up its right to file a mechanics lien, or a claim against a payment bond, for work covered by a payment. Owners and general contractors typically require waivers with each pay application and at final payment.

Waivers come in four types: conditional or unconditional, and progress or final. A conditional waiver takes effect only when the payment is actually received; an unconditional one takes effect on signing, whether or not the check arrives. Signing an unconditional waiver before funds clear gives up rights for money you may never receive. Some states prescribe statutory waiver forms; others allow any agreed form.