California lien waiver forms: which one to use and when

The four California forms

These rules sit in the Civil Code's works of improvement part, which covers private and public jobs, and they've applied since July 1, 2012. They protect every claimant down the chain: under § 8122, an owner, direct contractor or subcontractor can't waive or impair another claimant's rights by contract, and a contract term that tries is void unless and until the claimant signs one of these waivers.

How strictly you have to follow them

Section 8126 adds that any other oral or written statement waiving a lien or claim is void, unless the claimant has actually been paid in full. So a GC's homemade release, or a waiver tucked into a subcontract, doesn't do what the GC thinks. The two exceptions in § 8130 are an accord and satisfaction of a good faith dispute and a court settlement, if either specifically refers to the lien or claim. A stop payment notice can also be reduced or released in writing outside these forms (§ 8128).

Conditional vs unconditional in California

A conditional form opens with a notice that it waives rights “EFFECTIVE ON RECEIPT OF PAYMENT” and says a person shouldn't rely on it “UNLESS SATISFIED THAT THE CLAIMANT HAS RECEIVED PAYMENT.” It names the maker of the check, the amount and the payee, and it's “effective only on the claimant’s receipt of payment from the financial institution on which the following check is drawn.” Under § 8124(b), evidence of payment is your endorsement on a check the bank has paid, or your written acknowledgment of payment.

An unconditional form starts with a Notice to Claimant, which must be in type at least as large as the largest type elsewhere on the form:

What each form leaves untouched

California's forms have a built-in Exceptions section, and it's different on each. Read it before you sign, because it's the only list of what you keep.

• Conditional progress (§ 8132): retentions; extras you haven't been paid for; earlier progress payments you gave a conditional waiver for but never received, with their dates and amounts; and contract rights, including rescission, abandonment, breach and pay for work this payment doesn't cover.
• Unconditional progress (§ 8134): retentions, unpaid extras and the same contract rights. There's no line for unpaid earlier payments, which is one more reason to sign it only once the money is in.
• Both final forms (§§ 8136 and 8138): only “disputed claims for extras in the amount of” a figure you write in. Everything else on the job is released.

Signing: claimant only, no notary

The signature block on each form is three lines: Claimant's Signature, Claimant's Title and Date of Signature. Section 8124 requires the claimant's signature and nothing more, so there's no notary or witness. The title line matters on a company waiver: it shows the signer had authority.

That signature can be electronic. California's Uniform Electronic Transactions Act, Civil Code § 1633.7, says a signature can't be denied legal effect because it's electronic and that an electronic signature satisfies a law requiring a signature. California's act has a longer exclusion list than most states, so see California's e-signature law for what it leaves out.

Common California mistakes

• Unconditional before the check clears. The notice says it plainly: the form binds you even if you haven't been paid.
• A through date that runs ahead of payment. Progress forms waive rights through the Through Date, so match it to the period the payment actually covers.
• Leaving executed change orders off the Exceptions. They're released by default.
• Signing a final waiver while retention is still held. The final forms don't except retentions, so wait for the last check.
• Editing the statutory text. Adding or deleting language moves the form away from “substantially” and can void it.

Sending California waivers with SignMaster

SignMaster doesn't supply California's forms or check your copy against the Civil Code, so build each one from the statute text and keep it untouched. After that, the monthly cycle runs itself:

1. 1

   One template per form

   Upload each of the four forms with New template on the Templates page and name the signing role Claimant. Keep the Notice to Claimant at full size on the two unconditional forms.

2. 2

   Fields for every blank

   Name of Claimant, Name of Customer, Job Location, Owner, Through Date, the check details and each Exceptions line become text or currency fields. Add a Signature field, a text field for the title and a Date signed field for the claimant.

3. 3

   Conditional first, unconditional after

   Send the conditional form with the pay app, then the unconditional form once the payment has cleared. Reminders and a sign-by date keep the second one from slipping.

4. 4

   Collect a whole draw at once

   On paid plans, bulk send sends one form to every sub from a CSV with each row's amount and through date, and its results file shows who has signed before you cut checks.