Conditional vs Unconditional Lien Waivers
This is the most important lien waiver decision you’ll make. Use the wrong type at the wrong time and you can waive lien rights before payment actually hits your bank account.
Most lien waiver disputes don’t start in court — they start with someone clicking the wrong checkbox or signing the wrong form at the wrong time.
What is a conditional lien waiver?
A conditional lien waiver only becomes effective if payment is actually received. If the check bounces, the ACH fails, or the wire is delayed, the waiver does not take effect.
Conditional waiver in plain English
“I agree to waive my lien rights if I get paid.”
What is an unconditional lien waiver?
An unconditional lien waiver is effective immediately upon signing. Payment status doesn’t matter — once it’s signed, lien rights for that scope are waived.
Unconditional waiver in plain English
“I give up my lien rights now, whether or not the money actually arrives.”
When should you use each?
This is the safest general rule used by billing teams:
- Payment not received or not cleared → use a conditional lien waiver
- Payment fully received and cleared → an unconditional lien waiver may be appropriate
Why using an unconditional waiver too early is risky
If you sign an unconditional waiver before payment clears and something goes wrong, you may have no lien rights left to enforce payment.
This happens more often than people think — especially with:
- Checks mailed at the end of the month
- ACH payments delayed by weekends or holidays
- Partial payments or disputed amounts
How this ties into progress vs final waivers
Conditional vs unconditional describes payment status. Progress vs final describes billing stage.
Most waiver mistakes happen when these two concepts are mixed up.
The safest combination for most progress billings
- Progress + Conditional → most common and safest
- Final + Unconditional → typically only after final payment clears
Next steps
If you’re still unsure, these two guides help lock it in: