Lien Waivers

Conditional vs. Unconditional Lien Waivers: What Every Contractor Must Know

July 21, 2026

Lien waivers protect the people paying for a project by confirming that a contractor or supplier has been paid and gives up the right to file a mechanics lien. But not all waivers are created equal. Sign an unconditional waiver before the money actually clears, and you may have waived your lien rights for a payment you never received.

What is a conditional lien waiver?

A conditional waiver only takes effect once payment is actually received and clears. It is the safe choice to hand over when you invoice or when a check is promised but has not yet landed in your account. If the payment bounces or never arrives, the waiver is void and your lien rights stay intact.

What is an unconditional lien waiver?

An unconditional waiver takes effect the moment you sign it, regardless of whether you have actually been paid. Only sign one after the funds have cleared your bank. Once signed, you have permanently given up your lien rights for the amount stated, so timing is everything.

Progress vs. final waivers

• Conditional progress: sign when requesting a progress payment during the job.
• Unconditional progress: sign only after that progress payment has cleared.
• Conditional final: sign when requesting your final payment and retainage.
• Unconditional final: sign only after the final check has cleared your account.

The simple rule to protect yourself

When in doubt, sign conditional until the money clears, then follow up with unconditional. LienGuard generates all four waiver types in minutes so you always hand over the right document at the right time.