Payment paperwork
all claims through
You may be promising you have been paid, or giving up payment rights, before the money is actually in your account.
Why it matters
A shop's leverage is strongest before rights are waived. Once an unconditional waiver is signed, getting paid can become much harder.
Subcontractor waives lien rights and will execute an unconditional waiver before payment is released.
Subcontractor will provide conditional waivers before payment and unconditional waivers only after corresponding good funds are received.
Can we use conditional waivers until funds clear and limit each waiver to the exact payment amount, through-date, and work actually being paid?
Use counsel if a waiver releases unpaid change orders, retainage, delay claims, or all project rights before money is in the account.
Next step
Check the actual subcontract language.
Use the phrase checker or upload the subcontract to see whether this wording appears with other risk terms.