Four types of California lien waivers

In California, lien waivers are specific templates that trade companies must follow. You can find them in the mechanics lien rules. When people in various industries, including plumbing, electrical work, property management and construction lending, use these forms, they give up their right to file a mechanics lien. Companies send them with invoices, and many professionals use elaborate tracking systems to track them. There are at least four types of lien waivers.

Conditional progress lien waivers

This is the type of waiver you will sign if you are getting small payments for work currently in progress. The dated waiver lists the current payment, date and unpaid balance and allows the person to list exceptions if there are any. This form is used while waiting for the partial payment to hit your bank account.

Unconditional progress lien waivers

The critical difference between conditional and unconditional progress lien waivers is that with unconditional ones, the money is already in your bank account, or you have been paid cash. Like conditional progress waivers, they are used when smaller partial payments are made before a job’s completion. Ensure you check to ensure that the amounts listed are correct because construction law says what is on the form is factual.

Conditional final lien waivers

This indicates that the job has been completed, but you have not yet received the final payment. It lists the completion date, describes the work done and requests payment. Double-check this form carefully because you are giving up your mechanics law rights.

Unconditional final lien waivers

When you sign this form, you give up all your rights to file a mechanics lien. You are indicating that the money is already in your bank account.

Four types of lien waivers are used in construction projects. Being aware of them is critical to protecting your business interests.