30-Second Summary
- A conditional waiver and release on progress payment acknowledges a partial payment but becomes effective only when the money truly arrives (e.g., cleared funds or other evidence per your state’s rules).
- Use it for draw payments during the job—not for final payment and not after you’ve already confirmed funds.
- Spell out the Through Date, the amount, and list exceptions like retainage or unpaid change orders.
- When your state publishes a statutory form, use that form. Language and layout matter.
What is a conditional waiver and release on progress payment?
It’s a lien waiver used mid-project to smooth cash flow. You’re saying:
“I’ll waive lien rights for the work covered by this draw—if and only if the draw is actually paid.”
That “if and only if” is the difference between sleeping well and chasing money for weeks.
Many states publish official (statutory) forms. If yours does, use that exact text and format so your waiver
is recognized and enforceable.
Who should use it and when?
Contractors & Subcontractors
- Use it before funds clear for a progress payment governed by a pay application or schedule of values.
- Don’t use it if the payment already cleared; at that point, an unconditional progress waiver may be appropriate.
- Never sign an unconditional to “expedite” payment. If the check bounces, you could lose your leverage.
Owners, Developers & GCs
- Request a conditional progress waiver with each draw, matched to the period billed.
- Verify the Through Date, amount, and that retainage or pending changes are properly excepted.
- Release funds only after you receive a properly executed waiver.
Form fields explained (plain English)
| Field | What it means | Pro tip |
|---|---|---|
| Project / Owner / Customer | Identifies the job and parties so the waiver can’t be misapplied elsewhere. | Match names to the contract and pay app—consistency prevents disputes. |
| Claimant | That’s you (the party giving the waiver). | Use your full legal entity name. |
| Progress Payment Amount | The exact dollar amount tied to this draw. | It should reconcile to your pay app and payment request. |
| Through Date | The cut-off date for labor/materials covered by this waiver. | Align it with the billing period. Don’t accidentally waive beyond the draw. |
| Exceptions | Items not waived—retainage, disputed sums, approved-but-unpaid change orders. | List them. Blank exceptions = easy misunderstandings. |
| Conditional Language | Makes the release effective only when payment actually occurs. | In statutory states, keep the exact wording. |
| Signature & Date | Execution details for validity and recordkeeping. | Include title and contact info. For joint checks, coordinate endorsements. |
Quick decision guide
Are funds received and cleared? ├─ No → Use a conditional waiver and release on progress payment. └─ Yes → For this draw, consider an unconditional progress waiver. Is this the final payment? ├─ No → Progress (conditional or unconditional) applies. └─ Yes → Use a final form (conditional before funds clear, unconditional after).
Pre-signing checklist
- ✔ The document title matches conditional waiver and release on progress payment.
- ✔ Amount equals the draw you’re actually expecting.
- ✔ Through Date matches the billed period.
- ✔ Exceptions list retainage and unpaid changes.
- ✔ You’re using your state’s statutory form if required.
- ✔ Delivery method and timing are documented (email + PDF, portal upload, etc.).
Top mistakes (and how to avoid them)
- Signing unconditional too early. Keep it conditional until funds clear.
- Wrong Through Date. Never waive beyond what the draw actually covers.
- Forgetting exceptions. Retainage and open change orders should be spelled out.
- Editing statutory text. In states with official language, use it verbatim.
- Vague party names. Use exact legal names to avoid misapplication.
Copy-ready templates
1) Waiver text (non-statutory educational sample)
Use your state’s statutory form if one exists. The sample below is for drafting practice and intake only.
CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT (Sample – Non-Statutory) Project: _________________________ Job/PO#: ______________ Owner: ___________________________ Job Address: ____________________________ Claimant (Your Company): ____________________________________________________ Customer (Who Hired You): _________________________________________________ Progress Payment Amount: $__________ Through Date: ____ / ____ / ______ This is a CONDITIONAL waiver and release on a PROGRESS payment. It becomes effective only upon actual receipt of payment in good funds for the amount above. This waiver does not cover retainage, unpaid or disputed items, or work/materials after the Through Date unless listed below. Exceptions (retainage/change orders/disputes not included in this payment): ___________________________________________________________________________ Signature: ______________________ Name/Title: __________________ Date: ____ / ____ / ____
2) Email you can send with your waiver
Subject: Conditional Waiver and Release on Progress Payment – Draw #[X], Project [Name] Hello [GC/Owner Name], Attached is our for Draw #[X], covering work through [Through Date] in the amount of $[Amount]. Exceptions include [retainage/change orders]. Upon receipt of funds in good form, the waiver becomes effective as drafted. Please confirm the scheduled funding date. Let me know if you need anything else. Thanks, [Your Name, Title] [Company] [Phone] | [Email]
FAQs
Does a conditional progress waiver protect me if a check later bounces?
Yes—the release is conditioned on actual payment. If payment fails, your rights remain.
What about retainage?
List it as an exception. Progress waivers usually don’t cover retainage unless you say they do.
Do joint checks change anything?
Coordinate endorsements before you deliver the waiver. The release still turns on payment actually being made.
My state has official forms. Can I tweak the wording?
Don’t. Use the statutory language and layout as published so the waiver is enforceable.
Important note
This article is general information—not legal advice. Lien and waiver rules are state-specific. Always follow your state’s required form and consult a construction attorney for your project.