California Final Unconditional Lien Waiver: Template and Guide

California final unconditional lien waivers are typically signed once all payments have been cleared at the end of the project. When a hiring party requests a supplier or subcontractor to sign an unconditional lien waiver, it means they are asking for the signing party to relinquish all their mechanics lien rights, whether they’re paid or not.

This is why this type of lien waiver is usually requested at the end of the project when all payments have cleared: to assure the hiring parties that no lien claims are made after the project has closed.

Unconditional Final Lien Waivers in California: Releasing All Your Lien Rights

In California, much like many states, unconditional final waivers are the last stop–once signed, this type of lien waiver removes your right to file a lien on your work or materials delivered for the entire project.

Signing acts as a confirmation that you have indeed received your full and final payment, and you are now immediately and unconditionally releasing your lien rights. Other lien waiver types in California are used throughout projects and are usually exchanged for payments.

It’s important to note that in order to have lien rights in California, preliminary notices need to be sent according to the deadlines set out in California lien laws.

Here’s a quick rundown of the types of waivers in California

California unconditional vs conditional lien waivers

• Unconditional lien waivers waive your lien rights with no conditions–meaning whether you’re paid or not.
• Conditional lien waivers waive your lien rights on the condition that you have been paid.

Final vs Progress Payment Lien Waivers

• If the lien waiver is on progress payments (partial waivers), lien rights are released or waived (conditionally or unconditionally) only for the payment specified in the waiver form.
• If the waiver is for full or final payment, you are releasing all lien claims (conditional waiver on final payment or unconditionally) on your work or materials provided for the full project.

You can think of unconditional lien waivers as receipts—proof that progress or final payment has been made with no strings attached. Conditional lien waivers, on the other hand, are more like “pending” invoices: they confirm that payment is expected but not yet finalized.

Lien waiver exchanges happen throughout projects: payments are exchanged for a corresponding lien waiver and release. This is why lien waivers are key in payment compliance and revenue protection in construction. The hiring party is protected from undue lien claims, while hired parties retain their lien rights unless explicitly released upon payment, using the appropriate lien waiver type.

California unconditional waiver and release on final payment forms are standard, including a statutory statement that outlines that payment has been finalized and all lien rights are now void. Here’s an unconditional final lien waiver template for California:

Ensuring that you’re signing the correct lien waiver type is critical–you need to make sure that you have been paid in full before signing the unconditional lien waiver. Otherwise, you will have no recourse in case payment does not push through.

Remember that the lien waiver form in California is also a lien release form (unconditional waiver and release on final payment), meaning once signed, the lien release is also legally binding. It releases the responsibility of the project owner, the surety (if any), and the hiring party to pay the claimant signing the waiver.

Since the waiver is unconditional, no proof of payment is required to finalize the lien release. Signing it means the claimant confirms that they have been paid.

Do unconditional lien waivers need to be notarized in California? California lien waivers do not have to be notarized.

Lien Waiver Management in California

California has one of the most developed and specific lien laws in the US. If you are a supplier or subcontractor working on multiple projects, it’s important to be meticulous in handling waivers and payments, ensuring that the correct type of waiver is exchanged for payment. Being detailed and organized prevents suppliers and contractors from releasing lien rights on projects or invoices for which they have not been paid yet.

Finance and credit departments that manage lien rights protection know that timing and accuracy are critical for any waiver, notice, or legal document involved in protecting payment rights in California.

The entire process of payment compliance and protection can be tedious, especially because there are so many moving parts involved, and the risk of losing revenue due to minor errors is high.

Managing Lien Waivers with Handle

At Handle, we help the credit departments of some of the biggest construction suppliers manage lien waivers and payments.

Whether you’re issuing or requesting lien waivers, Handle’s waiver management platform removes the risk of non-compliance with state laws and streamlines the process of using information from your ERP or accounting software to populate the correct waiver forms and take timely action. It matches payments with waivers to ensure correct waiver exchanges, and alongside Handle’s lien and notice management features, suppliers’ lien rights are always secured in case of payment issues.