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Conditional Waiver And Release On Progress Payment for the United States

Conditional Waiver And Release On Progress Payment Template for United States

A Conditional Waiver and Release on Progress Payment is a legal document used in construction projects across the United States that provides a conditional release of lien rights up to a specific payment amount. The document becomes effective only upon receipt of the specified payment, protecting both the party making the payment and the party receiving it. It's commonly used during ongoing construction projects where partial payments are made for completed work.

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Conditional Waiver And Release On Progress Payment

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What is a Conditional Waiver And Release On Progress Payment?

The Conditional Waiver And Release On Progress Payment is a crucial document in U.S. construction project management, used when partial payments are made for completed work. It serves as a safeguard for both parties by ensuring that contractors and suppliers release their lien rights for work completed up to a certain date, but only after receiving the agreed-upon payment. This document is particularly important in states with strict mechanics lien laws and is often required before progress payments are released. The conditional nature of the waiver protects contractors and suppliers by ensuring their lien rights remain intact until payment is actually received.

What sections should be included in a Conditional Waiver And Release On Progress Payment?

1. Identification of Parties: Names and details of the claimant and party making payment

2. Project Information: Description of the project and property location

3. Payment Amount: Specific amount of the progress payment being made

4. Conditional Statement: Statement that the waiver is conditional upon receipt of payment

5. Scope of Release: Description of what claims are being waived

What sections are optional to include in a Conditional Waiver And Release On Progress Payment?

1. Through Date: Specific date through which the waiver applies - used when the waiver needs to be limited to a specific time period

2. Exceptions: List of specific claims or rights not being waived - used when certain claims need to be preserved

3. Payment Details: Specific payment method and timing - used when payment terms need to be explicitly stated

What schedules should be included in a Conditional Waiver And Release On Progress Payment?

1. Schedule of Work Completed: Detailed list of work completed for which payment is being made

2. Payment Schedule: Breakdown of payment amounts and dates if multiple payments are involved

3. Prior Lien Waivers: Copies of any previous lien waivers related to the project

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Release of Lien

Cost

Free to use
Relevant legal definitions
Clauses




















Industries

State-Specific Mechanics Lien Laws: State-specific regulations governing lien waivers, including mandatory statutory forms in states like California, Texas, Arizona, and Florida. Non-compliance with state requirements may invalidate the waiver.

Uniform Commercial Code (UCC): Federal regulations including Article 3 (negotiable instruments) and Article 9 (secured transactions) that affect payment and security interests in construction contracts.

State Contract Laws: General state-specific contract regulations covering formation requirements, consideration requirements, and enforceability provisions.

Federal and State Construction Payment Laws: Including Prompt Payment Acts, Fair Payment laws, and Little Miller Acts (for public projects), which govern payment terms and conditions in construction contracts.

State-Specific Notice Requirements: Regulations governing required statutory notices, timing requirements, and format requirements for construction-related notices and waivers.

Federal and State Consumer Protection Laws: Consumer protection regulations that may apply to specific project types and affect the terms of waivers and releases.

Building and Construction Industry Security of Payment Acts: Jurisdiction-specific legislation designed to ensure secure and timely payments in the construction industry.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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