A conditional lien waiver for partial payment, also known as a “conditional lien release for progress payment”, is a contract used for surrendering a contractor’s right to file a lien on a property in the amount they have already been paid. Like a receipt, the signed waiver provides the payor with proof that the contractor has been paid up to a specific date (shown as the “through date” on the form).
This protects the paying party from complications that can arise from a mechanic’s lien, including the possibility of needing to pay the claimant twice. Conditional waivers are often sent alongside invoices. The guarantee that the payor won’t be able to file a lien once receiving payment often results in faster transactions and improved owner-contractor relationships.