The Full Conditional Lien Waiver serves as a crucial risk management tool in construction projects across the United States. It is typically used when a contractor or subcontractor is receiving payment for completed work and needs to provide assurance that no liens will be filed against the property once payment is received. The conditional nature of the waiver means it only becomes effective upon actual receipt and clearance of the specified payment. This document must comply with state-specific mechanics lien laws and often requires specific statutory language. The Full Conditional Lien Waiver provides protection for property owners while ensuring contractors maintain their lien rights until payment is actually received.
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1. Identification of Parties: Details of the contractor/subcontractor waiving rights and the party receiving the waiver
2. Project Information: Specific details about the construction project, including location and owner
3. Payment Amount: Specific amount received or to be received in exchange for the waiver
4. Scope of Waiver: Explicit description of what rights are being waived
5. Conditional Terms: Specific conditions that must be met for the waiver to become effective
1. Retention Rights: Specific language preserving rights to retained amounts when dealing with projects involving retention
2. Exception Claims: List of specific claims or rights being preserved when certain claims need to be excluded from the waiver
3. Prior Rights Preservation: Language preserving rights from prior work or claims when prior work or claims need to be protected
1. Schedule of Work Performed: Detailed list of work covered by the waiver
2. Payment Schedule: Breakdown of payments received and pending
3. Project Documentation: Relevant project documents, contracts, or change orders referenced in the waiver
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