Construction Lien Waiver Template

CONSTRUCTION LIEN WAIVER

This Construction Lien Waiver (the Waiver) is made by Claimant Name: with principal place of business at Claimant Address: (the "Claimant"), in favor of Payor Name: , concerning the Project known as Project Name: located at Project Address: . Effective Date:

RECITALS

WHEREAS, Claimant has supplied labor, materials, or equipment to the Project described above and has performed work for or furnished materials to the Payor or its general contractor; and

WHEREAS, Payor requires, as a condition to making payment or releasing funds, that Claimant execute and deliver a waiver releasing lien and claim rights in respect of amounts paid or to be paid to Claimant; and

WHEREAS, the parties wish to set forth the terms upon which Claimant will waive mechanics' lien, stop notice, bond claim, or similar statutory claim rights to the extent provided herein.

NOW, THEREFORE

In consideration of the mutual covenants and the payment obligations set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Claimant agrees as follows:

1. DEFINITIONS

For purposes of this Waiver, the following terms shall have the following meanings:

"Claimant" means the person or entity identified above who has provided labor, materials, or services to the Project. "Payor" means the entity identified above responsible for payment. "Lien Rights" means the right to record or enforce a mechanic's lien, stop notice, bond claim, or other statutory security interest for payment arising from work performed or materials furnished at the Project.

2. WAIVER TYPE AND PAYMENT

Claimant selects one of the following waiver types by marking the applicable box. Only one box should be selected; selecting the Unconditional Waiver affirms Claimant has received payment described below; selecting the Conditional Waiver operates only upon actual receipt and clearance of the specified payment.

Unconditional Waiver and Release: Upon receipt of the payment described below, Claimant acknowledges receipt of payment and irrevocably waives and releases, to the fullest extent permitted by law, all Lien Rights and related claims against the Project, the Payor, the owner of the Project, and their respective agents, employees and sureties, for labor, services, materials, equipment or other items furnished to the Project through the Effective Date.

Conditional Waiver and Release on Progress Payment: This Waiver is conditioned upon actual payment by Payor to Claimant in the amount set forth below and the clearance of such payment. Upon clearance of payment, Claimant shall be deemed to have released all Lien Rights to the extent of the payment amount.

3. ITEMIZATION OF WORK AND OUTSTANDING AMOUNTS

Claimant represents that the amounts for which it claims Lien Rights through the Effective Date are limited to the items listed below. If none, state "None" in the first line.

4. REPRESENTATIONS AND WARRANTIES

Claimant represents and warrants that: (a) Claimant has authority to execute this Waiver and to release Lien Rights; (b) all labor, materials and equipment furnished by Claimant through the Effective Date are described herein or have been paid in full; (c) there are no outstanding liens, claims, or encumbrances other than those disclosed above; and (d) Claimant will not assert any lien or claim against the Project or Payor for amounts included in the scope of this Waiver after acceptance of payment as described herein.

5. INDEMNITY

Claimant shall defend, indemnify and hold harmless Payor and the owner of the Project from and against any losses, claims, demands, liabilities, costs and expenses (including reasonable attorneys' fees) arising out of any lien, claim of lien, stop notice, or bond claim asserted by Claimant or any subcontractor, supplier or laborer for amounts released by this Waiver or for work performed by Claimant not disclosed herein.

6. RELEASE PROCEDURE

Upon receipt and clearance of the payment described above (if a Conditional Waiver was selected) or upon execution of this document (if an Unconditional Waiver was selected and payment has been received), Claimant shall promptly execute any additional releases, affidavits, or documents reasonably requested by Payor or the owner to evidence the release of Lien Rights. Claimant's obligation to execute such documents is a material part of this agreement.

7. NOTICES

All notices required or permitted under this Waiver shall be in writing and delivered to the addresses set forth below by hand delivery, certified mail (return receipt requested), or nationally recognized courier service.

8. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

This Waiver shall be governed by and construed in accordance with the laws of the State of Governing Law State: without regard to principles of conflicts of law. This Waiver constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations and agreements. If any provision of this Waiver is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

9. AMENDMENTS; WAIVER; COUNTERPARTS

No amendment or waiver of any provision hereof shall be effective unless in writing and signed by the party against whom enforcement is sought. Failure to enforce any provision shall not constitute a waiver of future enforcement. This Waiver may be executed in counterparts, each of which shall be deemed an original, and facsimile or electronic signatures shall be binding for all purposes.

10. CERTIFICATION

By signing below, Claimant certifies under penalty of perjury that the information contained in this Waiver is true and correct to the best of Claimant's knowledge, that Claimant has the right and authority to execute this Waiver, and that Claimant has been paid or will be paid as indicated herein for the items released by this Waiver.

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