Conditional Lien Waiver
A lien waiver that only becomes effective once payment is actually received by the claimant.
A Conditional Lien Waiver waives lien rights only upon the condition that payment is received. Until the check clears or the wire transfer is confirmed, the waiver is not effective and the claimant retains full lien rights.
Conditional waivers are used at the time payment is requested. They protect the subcontractor by ensuring they don't give up their lien rights before actually receiving money. GCs should collect conditional waivers with each pay application.