What is conditional lien waiver on progress payment?
A lien waiver is a document developed to safeguard the benefit of the persons who provide with materials, labor and other services for the finish of a construction project. The petitioner, who is the person or a group of people who offered the materials, labor and other significant services specific to the project sign the waiver stating that they have approved the payment for the work accomplished by them and that they waive any liability rights to the property of the owner. The payment is usually done in a progressive form demanding no checks to be sent back or be stopped up. There are 4 types of waivers; first one is a conditional waiver of progress payment, second one is an unconditional waiver of progress payment, similarly the next two are: conditional waiver of final payment and unconditional waiver on final payment.
How it works?
Out of all of these, the conditional waiver on progress payment is considered to be the safest waiver as it will release all claimants’ rights via a specific date, mentioned on the form as “Through Date”, provided all the payments are cleared by the date that is mentioned. A conditional waiver and release on a progress payment form will incorporate the following details: The name of the claimant, the name of the owner, the job area, owner and the through date in the part of the form which deals with identifying info. The next part of the application will ask the owner to fill in the details of the financial institution such as the name of the bank at which the check was drawn, the amount the check is worth and the name of the person or organization to whom the check is payable to. Furthermore the next section could ask you the details of other waivers for which you haven’t received payment yet. They ask you to fill out the through date of the waivers and the exact amount to be paid. The last section will deal with the claimant’s signature, his or her title and the date of signature.
What are the advantages?
This document will assist you get payment for your services extended with surety as the through date set will ensure that the property built by your efforts is not released readily to its owner. The form is beneficial for all claimers as the fear of non-release of property is a strong one as far as the owner is concerned, he is very likely to give the money asked of him in the very beginning of the project readily to safeguard his interests. This document becomes more of a binding one that prevents anyone to default and be tied up in any sort of lawsuit.