Conditional vs. Unconditional Lien Waiver
Two forms of [[concept-lien-waiver|lien waiver]] a payee can sign. A conditional waiver only takes effect once payment actually clears, while an unconditional waiver takes effect immediately upon signing, regardless of whether the check clears, making it far riskier for whoever signs it.
Why it matters
Signing an unconditional waiver in exchange for a check that later bounces means the lien rights are already gone, a conditional waiver is what actually protects a payee until the money is confirmed in hand.
On a real project
A subcontractor receives a progress payment check and signs a conditional lien waiver rather than an unconditional one, so the waiver only takes effect once that specific check actually clears the bank.
Who this matters most to
A Contracts Administrator tracks which form of lien waiver each payment requires, since signing the wrong one can waive lien rights before payment is actually confirmed.
Where this goes wrong
A subcontractor signs an unconditional lien waiver in exchange for a check that later bounces, and has now waived its lien rights on that payment even though it was never actually paid, a mistake a conditional waiver would have prevented.