Home

Conditional vs unconditional lien waivers in Texas

The only real question is timing: does your lien right end when you sign, or when the money lands in your account?

The conditional waiver

A conditional waiver becomes effective only when the payment identified in the waiver is actually received. If the check bounces, the wire never arrives, or the payment is short, your lien rights remain intact for the work described.

This is the safe default for subs and suppliers. You hand over a signed waiver as part of the draw package, but you are not giving up leverage until the funds clear.

The unconditional waiver

An unconditional waiver releases lien rights the moment it is signed, whether or not the money ever shows up. Texas law requires a bold notice at the top of every unconditional form warning of exactly that.

Sign one only after the funds are confirmed. Never sign an unconditional waiver as a condition of receiving a check that has not cleared, no matter how routine the request sounds.

Progress versus final

Progress waivers release rights for a specific payment through a specific date. They do not release retention, and they do not release work you furnish later. That is why they are used on every draw.

Final waivers release everything on the job, including retention and pending change orders. There is no exceptions line on a final waiver in Texas, so nothing is carved out.

What the four forms look like together

Conditional progress: safe until the progress payment clears. Used on draws.

Unconditional progress: rights released now for that progress payment. Used after funds clear.

Conditional final: everything released when the final payment clears. Used at closeout while funds are moving.

Unconditional final: everything released immediately, including retention. Used only after final funds clear.

A practical rule for the field

If the money is not in your account, use a conditional form. If the money is in your account, an unconditional form is appropriate. When a GC insists on unconditional before payment, that is a negotiation about risk, not paperwork.

WaiverTrack TX labels each form with its statute reference and a plain-language warning so the person signing knows which side of the payment they are on.

Generate the form the statute requires

All four Texas forms, formatted correctly, with a plain-language warning before anyone signs.

See all four Texas forms

This article is general information about Texas lien waiver practice, not legal advice. Consult a Texas construction attorney for your situation.