Blog

When to Use an Arizona Conditional Waiver and Release on Final Payment

When to Use an Arizona Conditional Waiver and Release on Final Payment

Updated Nov 2025 | Private Projects: ARS §33-1008

Project owners and higher-tier parties in Arizona often require material suppliers to hand in a lien waiver before payment gets released. Arizona is strict with the forms used for different types of lien waivers as prescribed in (A.R.S. § 33-1008(D)(3)).

This guide explains the basics of one of the four types of Arizona lien waiver, the Arizona Conditional Waiver and Release on Final Payment.

Arizona Conditional Final Waiver Facts

Conditional lien waivers are safer than unconditional lien waivers because they are void unless the claimant has received payment. So, conditional waivers are often requested as part of the final payment process to protect both the hiring party and the claimant. Once payment is made, a conditional waiver releases the lien claim associated with the payment. In the case of the conditional waiver for final payment, it is used when all deliveries are done.

If your work on a project is still ongoing and not yet final, waivers for progress payments apply.

The Arizona Conditional Waiver and Release on Final Payment form must be of the following format (A.R.S. § 33-1008(D)(3)): 

The official form also includes the following mandatory warranty language:

“The undersigned warrants that he either has already paid or will use the monies he receives from this final payment to promptly pay in full all his laborers, subcontractors, materialmen and suppliers.”

This language must be included for the waiver to comply with statutory requirements (A.R.S. § 33-1008(D)(3)).

conditional az final

Arizona Lien Waiver Best Practices

  1. Verify that you are using the correct Arizona lien waiver form

Keep in mind that Arizona strictly regulates lien waivers. You must substantially follow the form described in the statutes (A.R.S. § 33-1008(A)); otherwise, your waiver may not be enforceable. Minor variations are allowed, but the waiver must include all required content, including mandatory warranty language.

  1. Double-check the accuracy of the information in your Arizona lien waiver

Be thorough when filling out your waiver. Names must be complete (including suffixes such as Ltd. or Inc.), dollar amounts must match the payment you expect, and any disputed-claims amount must be entered to preserve those rights (A.R.S. § 33-1008(D)(3)).

Ready for a demo?

See our platform in action and
ask us any questions you have
about Handle.

Contact Sales