The Conditional Waiver and Release on Final Payment is a crucial document in U.S. construction projects, typically used at the completion of work when final payment is being made. This document serves as protection for all parties involved, as it ensures that the contractor or supplier will receive their final payment while providing the property owner assurance that no future liens or claims will be filed. The document is conditional, meaning the waiver only becomes effective when the payment is received and cleared. Many states have specific statutory requirements for these waivers, and some states like California require the use of prescribed forms. The document should clearly state the amount of payment, project details, and the scope of the rights being waived.
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1. Parties: Identification of the claimant/releasing party and the party receiving the release
2. Project Information: Details of the construction project, including address and description
3. Payment Amount: Specific amount of the final payment being received
4. Conditional Statement: Statement that the release is conditional upon receipt of the specified payment
5. Scope of Release: Description of rights, claims, and liens being waived
6. Execution: Signature blocks and date of execution
1. Exceptions: List of specific claims or rights being retained, used when there are disputed claims or retained rights
2. Through-Date: Specific date through which claims are being waived
3. Additional Certifications: Additional statements certifying payment to subcontractors or suppliers
1. Schedule of Outstanding Claims: List of any claims or rights specifically excluded from the release
2. Payment Detail Schedule: Breakdown of the final payment amount and what it covers
3. Subcontractor/Supplier List: List of all subcontractors and suppliers who have been paid or will be paid from the final payment
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