Updated June 2025 | All statutory references are to the Arizona Revised Statutes, Title 33, Chapter 10.
Exchanging lien waivers is a common practice in construction. Lien waivers allow project participants to surrender their mechanics lien rights in exchange for payment, and some property owners require parties to first sign a lien waiver before releasing payment. In Arizona, lien waivers are state-regulated. This means that under (A.R.S. § 33-1008), any waiver and release is effective only if it substantially follows one of the forms set forth in the statute and is signed by the claimant or their authorized agent. Failing to use a form that substantially complies with the statutory requirements will render the waiver unenforceable.
Note that there are four types of Arizona lien waivers, but this guide explains all you need to know about signing an Arizona Unconditional Waiver and Release on Final Payment.
When Do You Use an Arizona Unconditional Waiver and Release on Final Payment?
There are two criteria that you must meet before you sign an Arizona Unconditional Waiver and Release on Final Payment:
1. You have already received your payment.
Every time you sign an unconditional lien waiver, you must first verify that you already have the payment on hand. As noted in (A.R.S. § 33-1008), an unconditional waiver is enforceable upon execution, regardless of whether you have been paid. If a cheque bounces and you have already signed this waiver, you may not receive your payment at all as you have already relinquished your lien rights.
2. You have received your final payment for a project.
This specific Arizona lien waiver applies for those who have received their final payment on a project. It means that your work on a project has wrapped up, and you are no longer expecting to receive any more regular paychecks in the future.
If you have received only a portion of your payment and your work on a project is still ongoing, consider signing an Arizona Unconditional Waiver and Release on Progress Payment. If you are unsure whether you have already received the payment or not, consider signing an Arizona Conditional Waiver for Final Payment.
How to Fill Out an Arizona Unconditional Waiver and Release on Final Payment
The first step is to ensure that the form you are signing substantially follows the correct Arizona Waiver and Release on Final Payment format. (A.R.S. § 33-1008).
Note that only a form that substantially follows the one provided in A.R.S. § 33-1008 is the correct Arizona Unconditional Lien Waiver and Release on Final Payment. To fill it out, simply provide the following required information in the blanks:
- Project: This is the main identification of the project, which could be the official project name or a project description that includes the project address.
- Job No.: This is the contract number of your project, if available. Otherwise, you may write the project description with the project address.
- $: This is the amount that you received in exchange for signing this waiver. The amount should be your final payment. Note that the statutory form has an exception for “disputed claims for extra work,” which you can preserve by listing the specific amount (A.R.S. § 33-1008).
- Person with whom undersigned contracted: This is the party who directly hired you for the project.
- Owner: This is the name(s) of the owner(s) of the property. You are allowed to write multiple names if there are multiple owners.
- Job description: This is the project location, which can be a legal property description or a simple street address.
- Date signed: This is the date when you sign the lien waiver.
- Company name, Signature, Title: This is your or your agent’s information, including your or their signature and official title.
Best Practices Before Signing an Arizona Unconditional Waiver and Release on Final Payment
1. Ensure that you have the correct lien waiver form
Remember that Arizona does not allow its construction parties to use just any type of waiver. Your Arizona Unconditional Waiver and Release on Final Payment must substantially follow the form prescribed in Arizona Statutes. Before signing your lien waiver, you have to first make sure that your form substantially matches what is required by the law to avoid any potential issues.
2. Ensure that you have received payment
Whenever you are signing an unconditional lien waiver, you always have to first verify that you have received the payment and that the money has been cleared in the bank. This is because unconditional waivers are enforceable regardless of whether payment is received or not. Signed cheques or credit card transactions may not go through, so you better make sure that you have the money before you revoke your lien rights.
3. Ensure that you are signing the appropriate Arizona lien waiver type
The Arizona Unconditional Waiver and Release on Final Payment applies when you have received your final payment on a project. This means that you are no longer expecting any additional payments in the future as your work on a project is already finished. If your work on a project is still in progress, you must sign an Arizona lien waiver for progress payment.
4. Carefully consider any disputed claims
The final waiver form provided in (A.R.S. § 33-1008) includes a specific line to preserve your rights to “disputed claims for extra work” by listing the dollar amount of the dispute. If you have outstanding, unresolved claims for change orders or extra work, you must list them on this line. Failing to do so will waive your right to later pursue a lien for those amounts.