Exchanging lien waivers is common practice in the construction business. Before payment is released, a property owner may require you to hand over a signed lien waiver that states you are relinquishing your right to file a mechanics lien.
There are many types of lien waivers you can use depending on how much of your lien right you are trying to waive. This guide will specifically walk you through the steps in filling out an Unconditional Final Payment Waiver in Nevada, including the best practices that you should keep in mind to make sure that you are signing the correct lien waiver form.
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- When do you use a Nevada Unconditional Final Payment Waiver?
- How to fill out a Nevada Unconditional Final Payment Waiver
- Best practices before signing a Nevada Unconditional Final Payment Waiver
When do you use a Nevada Unconditional Final Payment Waiver?
You must use a Nevada Unconditional Final Payment Waiver when you fulfil the following conditions:
a. You have already received payment.
Signing a lien waiver is usually a condition from a higher-tier party before they give you your payment. However, you must first verify that you have received your payment before you sign away your lien rights, especially when you are signing an unconditional waiver.
b. You are receiving your final payment for the project.
Since this specific waiver is for final payment, you must use it only when you are done working on a project and you receiving the last of your paycheques. In other words, you will no longer be entitled to any regular payments in the future after you sign this lien waiver. If there are disputed amounts and you are done with your work on the project, you may still use this lien waiver and include the disputed amounts in the form.
Always ask yourself if you meet the two criteria above before you use and sign a Nevada Unconditional Final Payment Waiver. Once executed, lien waivers are very difficult to retract.
If you do not meet not the criteria above, consider signing other types of lien waivers in Nevada.
How to fill out a Nevada Unconditional Final Payment Waiver
Nevada is one of the states that require construction participants to use statutorily prescribed lien waiver forms. This means that customizing your own lien waiver is not allowed in Nevada. Any customized lien waiver will not be considered valid, so make sure that you use the lien waiver form as prescribed by Nevada state laws.
The Nevada Unconditional Final Payment Waiver must be in the following form, in accordance with Nevada Revised Statutes § 108.2457:
When accomplishing the form above, make sure that you fill in all the blanks correctly with accurate information:
a. Property name
Write the designated name of the project. If there is no official project name, write the street address of the project location.
b. Property location
Write the street address of the project location. You may also write the legal property description, although it is not a requirement to do so.
c. Undersigned’s customer
Write the name of the party who hired you. Always check the spelling and completeness of the business names. Include the appropriate suffix (e.g. Ltd., Inc.) as required.
d. Invoice/payment application number
Write the invoice or payment application number that applies to the final payment that you are receiving. Verify that the amount written on the invoice and the payment you are receiving match each other.
e. Payment amount
Write the amount of the final payment that you are receiving. Again, verify that it matches the amount written on the invoice.
f. Amount of disputed claims
Write the amount of the disputed claims, if any. Disputed claims pertain to the amount that you think you should receive but the paying party disagrees with you. This amount is not part of the “Payment amount” mentioned above as this is still to be settled between you and the paying party.
Write the date when you sign the waiver.
h. Company name
Write the name of your company or business.
i. Your or your agent’s name (By)
Write your name and signature, or let your agent write their name and sign.
j. Your or your agent’s title (Its)
Write your job title or the job title of your agent.
Best practices before signing a Nevada Unconditional Final Payment Waiver
1. Ensure that you are using the correct lien waiver type
The Nevada Unconditional Final Payment Waiver is used only when you are finished working on a project and are set to receive your final payment. If you are still expecting regular payments to come in the future, you have to use a Progress Payment lien waiver type. Also, note that this is an unconditional lien waiver, so you should use this type only if you have verified that you have received your final payment.
2. Ensure that you have the correct Nevada Unconditional Final Payment Waiver form
You may not customize your own lien waiver form in Nevada, and it is very important that you use the state-prescribed forms. Be careful when sourcing forms on the Internet. Handle has a free template available for your use, and it is pursuant to Nevada statutes. Be careful not to modify the statements included in the form because customizing your own lien waiver is not permitted in Nevada.
3. Ensure that you have received the payment before signing
Before you sign away your lien rights through a Nevada Unconditional Final Payment Waiver, you must first be absolutely certain that you have received the payment. Ensure that the cheque has been cleared in the bank or that the credit card transaction has been approved. Once you sign an unconditional lien waiver, you automatically relinquish your payment rights, so always verify that you have the payment on hand before signing.