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Construction Lien Waivers - Conditional Release
Upon Progress #1
you submit an invoice for a project, chances are that you'll
be required to supply a lien release form,
from your supplier(s), and from you. These release
forms (aka lien
protect the general contractor, and the owner of the project,
from having to pay twice for materials, labor, etc.
When you submit an invoice (
aka payment request ) for a partial payment ( meaning you are
not billing for the entire amount of
your contract ), you'll use the release form titled, " Conditional
Waiver and Release Upon Progress Payment " (aka " #1 lien release ").
you'll include a release thru date.
I know, I know, what the heck is a release
thru date ... ? Well, typically, this type of invoicing
( aka progress billing ) runs on a monthly basis so, let's say
got a job running from January 1 through February 28....
In February, you'll submit an invoice
for work completed through the end of January. Along with that invoice,
you'll submit a Conditional
Release Upon Progress Payment form that will have a " release
thru date " of January 31 (the release thru date
corresponds with the invoice you're submitting for work
completed through the end of January).
This #1 lien waiver form
will also include the dollar amount that you are invoicing for,
as well as the customer's name, and the project title and address.
Once you receive the payment from your customer ( which should
be for the dollar amount on your invoice and release form ), your
customer is going to want another release form from you, this one
being the Unconditional Waiver and Release Upon Progress
Payment (commonly known as the " #2
lien waiver and release ").
Do NOT provide that #2
lien waiver form to your customer until your customer's
check has cleared both your bank account and your
customer's bank account!
Before you deposit the payment check in your bank account, first
photocopy the check or scan it or write down the info from the front
of the check.
need your customer's company name as it appears on the check,
the $ amount and
check number, and all the numbers running
along the bottom of the check. Also write down the name
and location of the bank that the check is drawn on. Now
you can deposit the check. :)
The industry standard for how long to wait for a check to clear
completely is usually 10 days. You can wait those 10 days or you
can call the customer's bank (which is why you made note of the
info from the front of your customer's check), before the 10 days
are up to see if the funds for the check have been sent from his
account to your account.
you've got confirmation that the check has cleared your account
and his account, then you can issue the #2
release . [continued]
all-inclusive release forms package that includes:
Very easy to follow step-by-step instructions on how to
fill in the forms;
outstanding article that tells you exactly
how to use which release form when;
other bits of info we've put together, valuable to
anyone saddled with the task of preliminary notices.
present him/her with one of these professional
release forms (and the correct one no less) you're showing that you
grasp the difficult-to-understand
lien release process, which will
score you brownie points for the next project!
able to fill
in these release forms with your computer before you print them
means you can drop-kick that typewriter and sheath
more white out or smudged ink, you will have a
perfect release form every single time you need one!
know exactly what you're doing because the how-to article will show you exactly how
to do it without a bunch of ridiculous
hard-to-understand legal terms.
I came to your site, all I knew was that I needed to
receive these forms from our contractors - now I know
WHY I need them. Thanks so much for all the wonderful
San Diego, CA
never have to purchase the
forms or anything in the
package ever again because
it all comes with unlimited free replacements!
again will you have unanswered lien law questions because
we've included contact info for a law firm that specializes
in construction and does mechanic's liens in all 50 states
and they'll answer your questions for free!
could go on and on but we've run out of room here so please click
through to take
a look at the California release forms package or the "Other States" release
forms package. :)
site is an obvious tool that anyone in construction should
Canoga Park, Calif.