Oregon Conditional Release and Waiver on Progress Payment: When to Send One | Handle

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Oregon Conditional Release and Waiver on Progress Payment: When to Send One

Oregon Conditional Release and Waiver on Progress Payment: When to Send One

July 2, 2020

A property owner or a higher-tier party might require you to hand over a signed lien waiver before they release your payment. This is common practice in the construction sector, so you should be familiar with all types of lien waivers that you might encounter when working in this business.

States like Oregon have fairly lenient rules on using lien waivers. Oregon laws do not require you to use a specific template, and there are no regulations against waiving your lien rights before getting paid. You have to be extra careful because if you sign the wrong lien waiver at the wrong time, you may end up losing both your payment as well as your lien rights.

Send an Oregon Conditional Waiver in 60 seconds

Send an Oregon Conditional Waiver in 60 seconds

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This guide discusses everything you need to know about the Oregon Conditional Release and Waiver on Progress Payment, from what details you need to write on your form to the best practices that you must keep in mind.

When do you use an Oregon Conditional Release and Waiver on Progress Payment?

An Oregon Conditional Release and Waiver on Progress Payment must be used when these two situations apply:

a. You are yet to receive your payment.

When you are not yet sure if the payment has gone through or when your client is waiting for your lien waiver before handing the money to you, you should use a conditional type of lien waiver. A conditional lien waiver takes effect only when you actually get paid. If a cheque bounces or if a credit card transaction gets denied, you will still have your lien rights intact.

b. You are expecting more payments in the future.

If your work on a project is still ongoing and you are still expecting to receive regular payments in the future, make sure that you sign a progress payment type of lien waiver. A progress payment lien waiver applies only to a small part of your payment in an ongoing project. In other words, use this Oregon lien waiver if you are not yet receiving your last paycheck yet.

If you do not meet the two criteria above, consider signing another type of Oregon lien waiver. Note that if you are in any way unsure of what waiver to use, it is best to use a conditional type rather than an unconditional type of lien waiver.

The Oregon conditional lien waiver preserves your lien rights in case a payment does not go through. An unconditional lien waiver, on the other hand, waives your lien rights unconditionally, even if your client does not honor their end of the payment agreement.

When do you use an Oregon Conditional Waiver and Release on Progress Payment

How to prepare an Oregon Conditional Release and Waiver on Progress Payment

There are no state-prescribed lien waiver templates in Oregon, so you can customize the language and details in your Oregon lien waiver. However, the information that you include in your lien waiver must always be truthful and accurate.

These are the general details that should be reflected on your Oregon Conditional Release and Waiver on Progress Payment:

a. The type of lien waiver

The title of the document can be “Conditional Release and Waiver on Progress Payment.”

b. Your name

The business name of your company must be written in full, including the applicable suffix like Inc. or Ltd.

c. The name of the party who hired you

The business name of your client must also be written in full.

d. The name of the general contractor

The business name of the general contractor may be included in the document if the general contractor is different from your client.

e. The name of the property owner

The name(s) of the property owner(s) must also be in your Oregon conditional progress payment lien waiver.

f. A description of the job location

The description of the project location may be a straightforward street address.

g. The amount that you are waiving

The amount you write under this item must be the same amount that you are expecting to receive from your client. Remember that this amount is for progress payment, so this is not yet the amount of your final paycheck.

h. Payment application or invoice number

The amount that you are waiving must match the amount written on the invoice or payment application that you are referencing in this item.

i. A statement saying you are waiving your lien rights for the specific amount provided that you receive your payment

This is the statement that details the point of the lien waiver: you are waiving your lien rights over a portion of your services as long as you get paid the amount that is written in the document.

j. Your name, job title and signature

This should be the name, job title and signature of the person executing your lien waiver, which could you or your authorized agent.

Best practices before signing an Oregon Conditional Release and Waiver on Progress Payment

1. Read through your contract and look for possible lien waiver language

Parties in Oregon are allowed to waive their lien rights unconditionally during any stage of a project. Your contract may have clauses about waiving your lien rights, so make sure that you read through this very important document before you sign it.

2. Use an Oregon Conditional Release and Waiver on Progress Payment rather than an Oregon Unconditional Release and Waiver on Progress Payment

You should use the Oregon Unconditional Release and Waiver on Progress Payment only if you are 100% certain that you have the payment at your disposal. If you have any uncertainties, signing an Oregon Conditional Release and Waiver on Progress Payment will always be the better option.
A conditional waiver protects you from possible non-payment, just in case your client does not honor their end of the payment agreement even after you handed a signed Oregon lien waiver.

3. Verify that you are signing the correct Oregon lien waiver

There are four types of lien waivers in Oregon and you must ensure that you are signing the correct document before handing it to your client. This specific waiver — the Oregon Conditional Release and Waiver on Progress Payment — applies when you are waiving your lien rights for progress payment.
This means that your work on a project is still in progress and that you are not yet receiving your final paycheck. Familiarize yourself with the other types of Oregon lien waivers so you know which type matches your situation best.

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