Waiver and Release of Lien

This lien release agreement documents that a company (the grantor) releases the other party (the grantee) from all known mechanic's lien claims for labor, materials, products, and services provided through the date of the agreement. It requires a clear scope description with line items such as invoices, job numbers, dates, and any recorded documents. The signer, as an authorized agent, represents that nothing has been assigned to third parties and that the listed items have been paid in full, making this an unconditional release for the items covered. It binds the claimant and successors and can fit the payment application process under a prime contract with subcontractors and suppliers.

In practice, businesses categorize waivers by progress vs final payment and by conditional release vs unconditional release. A conditional waiver and release upon progress payment or final payment is tied to a payment precondition; an unconditional waiver and release upon progress payment or final payment is effective upon execution and acknowledgment of payment. Interim waiver or partial waiver language can preserve retainage, and the release does not cover all items beyond the rights waived through date.

Many owners, architects, and construction lenders request evidence of payment, a written acknowledgment of payment, or a joint check or single check endorsement before funding the next project draw. This aligns with contractor application for payment workflows, architect review checkpoints, and confirmation to the lender.

Some states require statute-prescribed language or a statutory form. Examples include civil code sections 8132, 8134, 8136, 8138, Texas Property Code section 53.284, and the acknowledgment forms section 121.008. Jurisdiction-specific requirements may include notarized requirements, acknowledgments and proofs, and statutory notice forms. Generic lien waiver forms should substantially follow statutory language for enforceability, and businesses should be aware of owner-builder warning, consumer caution, and check the license resources where applicable.

On projects with a payment bond, the release may also address payment bond rights and release of payment bond rights, protecting the owner, surety, and downstream contractors. Flow down provisions, broad indemnification, and mechanics liens understanding under contract documents forms, such as A201-2017 general conditions and sworn construction statements, often require waiver execution from each lienor.

Proposal Kit helps organizations assemble waiver form samples and related contract clause library materials, generate detailed line-item scopes and quotes, and use its AI Writer to build supporting documents. Its extensive template library supports owner, contractor, and subcontractor payment workflows with ease of use across construction industry resources.

Expanding on the template, businesses typically organize waiver categories by both timing and conditions. For progress waiver uses, a progress payment condition limits lien rights waived through date, while a final lien waiver addresses a final payment condition. A conditional waiver and release upon final payment is binding upon evidence of payment, such as a written instrument acknowledgment or confirmation that payment was made.

An unconditional waiver and release upon final payment operates as a full unconditional waiver and is a waiver upon execution. In all cases, the waiver is only binding to the extent stated, and retainage not covered should be identified so the release does not exceed the consideration of the sum actually received.

State-specific forms matter. Some jurisdictions require forms prescribed by statute and waiver language prescribed, and expect parties to substantially follow the statutory form or substantially follow the form. Examples include California waiver forms, Florida waiver forms, Texas waiver forms, Georgia waiver forms, Nevada waiver forms, Utah waiver forms, Wyoming lien waiver, Michigan conditional waiver, Mississippi waiver and release, Missouri mechanic's lien release, and Arizona conditional waiver.

Where a waiver is prescribed by statute or subject to statutory requirements, common fields include a description of property, a dated year lienor entry, and a mechanics lien section. Some states changed notarization before 2021; others still require acknowledgments or forms prescribed by statute for waiver enforceability.

Operationally, a contractor is required to submit waivers downstream with subcontractor waivers as part of construction project payment controls. Owner, contractor, subcontractor chains use waivers for owner and lender protection and construction project funding, including deposit or draw confirmation by the construction lender and the owner, architect, and lender team. On bonded jobs, parties may include a payment bond waiver while preserving any payment bond claim or payment bond claims as permitted. Clear waiver representations, express written agreement terms, and attention to indemnification obligations support the enforceability of the waiver for each construction lien claimant and contractor supplier downstream.

Proposal Kit helps organizations assemble contractually required documents that align with construction owner requirements, including contractor's waiver packages and state-specific variations. Its document assembly, automated line-item quoting, AI Writer for supporting documents, and extensive template library streamline preparation and updates across funding draws and waivers.

Further considerations help teams avoid gaps between progress vs final payment paperwork. For any construction lien claimant acting as a lienor, ensure the description of property, consideration of the sum, and rights waived through date align with the payment application and project funding draw. Where a waiver is prescribed by statute, many state-specific forms include a mechanics lien section and a dated one-year lienor line plus a written instrument acknowledgment.

Owners should verify that retainage not covered is clearly noted, that waiver representations are consistent across the contractor's waiver and subcontractor waivers, and that the waiver is only binding to the extent stated. On owner-builder projects, include an owner-builder note and any statutory notice forms so that the owner-builder does not miss deposit or draw confirmation steps required by the construction lender or the owner-architect lender team. When bond coverage applies, parties may issue a payment bond waiver while preserving a payment bond claim if allowed. Waiver enforceability improves when the forms substantially follow statutory form, reflect an express written agreement, and are binding upon evidence of payment rather than waiver upon execution when a conditional form is intended.

Use cases include: a supplier releasing a progress waiver after a joint check clears; a GC issuing a full unconditional waiver and a final lien waiver once final payment condition is met; and a surety asking downstream contractors to submit waivers before confirming construction project payment. Proposal Kit supports these workflows by helping owner, contractor, subcontractor teams assemble forms prescribed by statute or generic lien waiver forms that substantially follow form, generate line-item scopes that match payment application entries, and produce confirmation that payment was made narratives. Its document assembly, automated line-item quoting, AI Writer for supporting documents, and extensive template library streamline contractually required waiver execution while supporting owner and lender protection.

How to write my Waiver and Release of Lien document - The Narrative

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