Updated August 2025 | All statutory references in this article reflect the Idaho Code, Title 45, Chapter 5 (2024 codification)
Payment disputes are so common in construction that lien waivers are frequently used. Lien waivers protect property owners from having to pay double by getting potential lien claimants to give up their rights once they get paid.
Unfortunately, lien waivers may also be abused, especially in states like Idaho, where lien waivers are not regulated. There are no statutory lien waiver forms in Idaho, and no limits on waiver content. Under the Idaho Mechanics Lien Law (§ 45-501 et seq.), lien rights are established, but the law does not restrict waiver language. This means general contractors or owners may draft waivers that require subcontractors and suppliers to give up more than just lien rights, sometimes including rights to retention, change orders, or claims unrelated to the progress payment.
If you are a contractor, subcontractor, or material supplier in Idaho, you must make sure that you understand the lien waiver that you are signing. This guide will answer some basic questions about one type of Idaho lien waiver: the Idaho Unconditional Waiver and Release Upon Progress Payment.
When to Sign an Idaho Unconditional Waiver Upon Progress Payment
If you are asked to sign this type of waiver, make sure that the following situations apply to you before signing:
You Have Received Partial Payment
This is an unconditional payment waiver, which means that the waiver takes effect right when you sign it. Whether you get paid or not, your lien rights will be waived immediately. This is why whatever amount you are promised to receive in exchange for signing this waiver must have already been cleared in the bank.
You Are Expecting More Payments
This is a progress payment waiver, which means that the payment you received in exchange for signing this waiver is just partial payment. Your work on a project is still in progress and you are still expecting to receive more payments in the future.
Ideally, you should never sign an unconditional lien waiver unless you are absolutely certain that you already have the money on hand. A check does not count as payment in this case because a check might bounce. A pending ACH or card transaction also does not count until the funds have cleared.
It is best practice to sign a conditional waiver instead of an unconditional lien waiver in Idaho to protect yourself from bounced checks and other payment disputes.
Step 1: Ensure You Are Signing the Correct Idaho Lien Waiver
As mentioned, you should never sign an unconditional lien waiver unless you have the money on hand and you are able to spend that money. Similarly, you must sign an unconditional lien waiver for progress payment when your work is still in progress.
To know that you are being made to sign an unconditional lien waiver for progress payment, watch out for the following details on the document:
- The Lien Waiver Is “Effective Immediately”
If the lien waiver says that it is “effective immediately” or if it has no conditional statement saying that the waiver will only take effect once payment is made, you are being made to waive your lien rights unconditionally. - The Lien Waiver Requires a “Through Date”
The “Through Date” is the date that sets the coverage for your lien waiver. Once you sign the lien waiver, you are waiving your lien rights only for the services that you performed through this date. This is to make sure that you are not waiving all of your lien rights, and that you can still file a mechanics lien for the work that you will perform on the project in the future.
Step 2: Ensure That All Key Details Are Included
Idaho has no rules on what information must be included in a lien waiver, regardless of type. However, when preparing or signing an unconditional lien waiver upon progress payment, make sure that it generally has the following information:
- The name of the property owner
- The name of the party who hired you
- Your name, address, and signature
- A description of the property location sufficient for identification
- A description of the services you provided
- The amount of payment you received in exchange for signing the lien waiver
- The “Through Date” that covers the payment period being released
The Through Date is especially important in a progress payment waiver because it limits the waiver’s coverage to work performed up to that date. Any work you perform after this date remains protected—you can still file a mechanics lien under Idaho Code § 45-507 if you are not paid for later work. Always check that the Through Date matches the payment received, and verify that the waiver amount has already cleared in your account before signing.
Step 3: Consider Using a Conditional Lien Waiver Instead
A conditional lien waiver is much safer than an unconditional lien waiver because it protects you if your client does not actually pay. Ideally, you will only sign an unconditional lien waiver once you have gotten your payment, but construction participants often make the mistake of signing away their lien rights just after receiving a check or processing a credit card transaction.
If a check bounces or the transaction gets rejected after a few days, you can no longer recover your lien rights once you’ve signed an unconditional waiver.
Step 4: Make Sure You Are Not Giving Up Other Rights
Idaho does not regulate its lien waivers, so the waivers can have all sorts of statements that cause you to give up more than just your lien rights. Some lien waivers may include provisions that get you to:
- Give up your right to retention pay
- Relinquish lien rights for all future work, not just through the waiver’s Through Date
- Waive claims for extra work, change orders, or disputed amounts
Always read the waiver carefully. If you are not sure about the statements written in it, clarify with your client or consult an expert before signing.