Not that many states require a specific form for lien waivers – but Arizona is one of those states! Honestly, this is good news — while it may just seem like more unnecessary regulation, it actually takes most of the thought and a lot of the fear out of the lien waiver process.
If the lien waivers set out by Arizona law aren’t followed, the waiver is unenforceable. Still, there are four different waivers included in the statute – it’s important to understand how each one of them operates. With that being said, let’s take a look at 1 of the 4 possible Arizona lien waivers, the Unconditional Lien Waiver for Progress Payments.
Guide to Arizona’s Unconditional Lien Waiver for Progress Payments
Before we get to the form – let’s be sure it’s even the right form for your situation. This waiver is unconditional, and it’s made in exchange for progress payments. If this waiver is being exchanged for the final payment on a project, then a final waiver may be in order. If payment has not been made prior to changing this waiver, a conditional waiver may be more proper.
Also, you must be extra careful whenever you’re exchanging an unconditional waiver such as this one. Do not use an unconditional waiver if your customer says that payment is “forthcoming” or if the “check is in the mail.” Unconditional waivers should only be used when the payment is in your hands — if you haven’t actually received the payment, then the safer, conditional waiver might be a better option.
Download a Free Template of this Waiver Form
Download a free template of this form (an editable .pdf) that you can fill out yourself.
Keep in mind: There are 4 different lien waiver forms that may be used in Arizona, depending on the situation. For help with the four different types of lien waivers, you should download this guide:
Here’s How to Fill Out the Unconditional Lien Waiver Form for a Progress Payment in Arizona
>Project. What project is this on? Include some identifying information – such as the address of the project where work was performed.
>Job No. Is there a contract number for this project or other official identifiers? If there’s a job name, that might be helpful, too.
>Sum of $____. Careful! This is the amount of the check exchanged for the waiver.
>Person with Whom Undersigned Contracted. Who hired the company submitting this lien waiver? Who was the “customer” to the party waiving their lien rights?
>Owner. Who owns the property where work was performed? This isn’t always easy, so be careful here!
>Job Description. What’s the address for this project? On a mechanics lien, the location of the property is typically identified with something formal like a legal description. For lien waivers, this requirement is often a little more laid back.
>Person with Whom Undersigned Contracted. Same as the above! Who hired the company submitting this lien waiver? Who was the “customer” to the party waiving their lien rights?
>Date. Caution! This may be the most important blank on the form! Since this waiver covers a progress payment rather than a final payment, it’s important to get it right. This should be the last date that materials or labor were furnished that is covered by this waiver. If work isn’t supposed to be covered by this waiver, make sure it didn’t occur after the above date.
>Dated: This is the date that this waiver is signed.
>Company Name. What’s the name of the company waiving their lien rights? Be careful! There can be some nuances when it comes to a business name – like getting the correct entity on the form (i.e. LLC, Inc., Ltd.).
>By: Time for the waiving party to sign this thing!
>Title. What’s the title of the individual who signed this waiver on behalf of their company?
>Notice. This notice is required by statute, but it’s pretty similar to the one we include in all of our lien waivers. It’s just good practice to make sure all parties involved understand the consequences of signing their waiver.
REMEMBER — There are four different types of lien waiver forms, and the CONDITIONAL waivers are the safest to use. Be extremely careful when using an unconditional lien waiver (such as the one described here in this article), as you may unintentionally give up your right to get paid before you actually get the cash in hand.