CALIFORNIA LAWS on CONDITIONAL and UNCONDITIONAL

PROGRESS PAYMENT and FINAL PAYMENT

STATUTORY MECHANICS LIEN RELEASE FORMS

Four Types of Statutory California Mechanics Lien Waiver and Release Forms

1. Conditional Mechanics Lien Waiver and Release Upon Progress Payment

- Contractor and Subcontractors Submit with Progress Payment Application

2. Unconditional Mechanics Lien Waiver and Release Upon Progress Payment

- Contractor and Subcontractors Submit After Receipt of Prior Progress Payment

3. Conditional Mechanics Lien Waiver and Release Upon Final Payment

under the law to waive rights to record a mechanics lien.

￢ Mechanic’s lien, stop notice and bond rights cannot be waived by provisions contained in

a contract or by using other forms of release.

￢ Waiver and Release Forms DO NOT release Breach of Contract etc claims, or claims

for: . Rescission

￢ Abandonment

￢ Breach of Contract

￢ Fraud Claims

￢ Tort Claims

Waiver and Release Forms - Extra Work Claims Not Reserved in Lien Release Forms

new forms for Conditional and Unconditional Lien Releases on Progress Payments and Final

Payments. (See Civil Code §§ 8132-8138, below.)

The last time the Legislature made changes in these forms, one court held that a

contractor or owner who did NOT use the new forms after their effective date did NOT

obtain a valid lien release!!!

CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT NOTICE: THIS

DOCUMENT WAIVES THE CLAIMANT'S LIEN, STOP PAYMENT NOTICE, AND

PAYMENT BOND RIGHTS EFFECTIVE ON RECEIPT OF PAYMENT. A PERSON

SHOULD NOT RELY ON THIS DOCUMENT UNLESS SATISFIED THAT THE

CLAIMANT HAS RECEIVED PAYMENT.

customer on this job through the Through Date of this document. Rights based upon labor or

service provided, or equipment or material delivered, pursuant to a written change order that has

been fully executed by the parties prior to the date that this document is signed by the claimant,

are waived and released by this document, unless listed as an Exception below.

This document is effective only on the claimant's receipt of payment from the financial

institution on which the following check is drawn: Maker of Check:______ Amount of Check:

$____ Check Payable to:_ Exceptions This document does not affect any of the following: (1)

Retentions. (2) Extras for which the claimant has not received payment. (3) The following

progress payments for which the claimant has previously given a conditional waiver and release

but has not received payment:

UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT NOTICE TO

CLAIMANT: THIS DOCUMENT WAIVES AND RELEASES LIEN, STOP PAYMENT

NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES THAT

YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMENT IS

PAID. IF YOU HAVE NOT BEEN PAID, USE A CONDITIONAL WAIVER AND

RELEASE FORM.

Identifying Information:

Name of Claimant:______ Name of Customer:______ Job Location:__ Owner:_________

Through Date:__

Unconditional Waiver and Release

This document waives and releases lien, stop payment notice, and payment bond rights the

claimant has for labor and service provided, and equipment and material delivered, to the

customer on this job through the Through Date of this document. Rights based upon labor or

service provided, or equipment or material delivered, pursuant to a written change order that has

been fully executed by the parties prior to the date that this document is signed by the claimant,

compensated by the payment.

Signature Claimant's Signature:_____ Claimant's Title:_________ Date of Signature:_____

CONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT NOTICE: THIS

DOCUMENT WAIVES THE CLAIMANT'S LIEN, STOP PAYMENT NOTICE, AND

PAYMENT BOND RIGHTS EFFECTIVE ON RECEIPT OF PAYMENT. A PERSON

SHOULD NOT RELY ON THIS DOCUMENT UNLESS SATISFIED THAT THE

Identifying Information Name of Claimant:__ Name of Customer:__ Job Location:__

Owner:_____

Conditional Waiver and Release

This document waives and releases lien, stop payment notice, and payment bond rights the

claimant has for labor and service provided, and equipment and material delivered, to the

customer on this job. Rights based upon labor or service provided, or equipment or material

delivered, pursuant to a written change order that has been fully executed by the parties prior to

This document is effective only on the claimant's receipt of payment from the financial

institution on which the following check is drawn:

Maker of Check:_____ Amount of Check: $___ Check Payable to:________

Exceptions:________________________________________

UNCONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT NOTICE TO

CLAIMANT: THIS DOCUMENT WAIVES AND RELEASES LIEN, STOP PAYMENT

NOTICE, AND PAYMENT BOND RIGHTS UNCONDITIONALLY AND STATES THAT

YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMENT IS

PAID. IF YOU HAVE NOT BEEN PAID, USE A CONDITIONAL WAIVER AND

RELEASE FORM.

Identifying Information Name of Claimant:______ Name of Customer:______ Job Location:__

Owner:_________

Unconditional Waiver and Release

This document waives and releases lien, stop payment notice, and payment bond rights the

claimant has for all labor and service provided, and equipment and material delivered, to the

the date that this document is signed by the claimant, are waived and released by this document,

unless listed as an Exception below.

The claimant has been paid in full.

Exceptions___________________________________________

This document does not affect the following: Disputed claims for extras in the amount of: $

____________________

N.B. The contents of this Article do not constitute legal advice or create an attorney-client relationship, and you

may not rely on it without seeking legal advice regarding your particular situation and contract from a

competent construction attorney. Please also note that statutes and case law are frequently changing and

these materials may become outdated.

For further information on this topic and how the current law may apply to your particular project and