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Q.What does a waiver and release upon a progress payment need to say to be valid?
A.The waiver and release must be signed by the contractor (subcontractor and/or supplier) and be in substantially the same form as provided by Civil Code Section 3262. There are two types of waivers and Release for a progress payment and two types of waivers and release for a final payment.
Conditional Waiver and Release Upon Progress Payment.
A conditional waiver is used to induce the payment of a progress payment. In other words it is typically executed just before the contractor (subcontractor and/or supplier) is about to be paid. The waiver is "conditional" because it does not become effective until the contractor (subcontractor and/or supplier) actually receives payment which can be verified by either an endorsement on a check which shows the check was paid and money withdrawn for a bank account or a written acknowledgment of payment given by the contractor, subcontractor and/or supplier. A sample "Conditional Waiver And Release Upon Progress Payment" is provided here.
Unconditional Waiver and Release Upon Progress Payment.
An unconditional wavier and release upon a progress payment is used when the construction contract requires the contractor (subcontractor and/or supplier) to execute a waiver and release upon receipt of the payment of a progress payment, The difference is that with the unconditional waiver and release the contractor (subcontractor and/or supplier) is admitting receipt of the progress payment and it is immediately valid. A sample "Unconditional Waiver And Release Upon Progress Payment" can be viewed here.
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