When payment is made as compensation during the course of a construction project, it is typically required for the individual making payment, which could be a property owner, contractor, sub-contractor, or sub-subcontractor, to receive a release of payment claims for the labor, materials, or services provided. If payment for work is made to a sub-contractor or sub-subcontractor, releases from any other parties that have furnished labor or materials for the construction of improvements to the property under that contractor should also be provided.
Under Florida Statues, the party providing the construction services must provide either a waiver and release upon progress payment form or a waiver and release upon final payment form when compensated for work or materials that have been provided. Since the courts have held that a signed waiver and release of lien is generally enforceable, contractors, subcontractors, sub-subcontractors, and material suppliers are highly advised to pay careful attention when providing such forms. To ensure that your rights are properly protected, it is recommended to seek the guidance of a construction law firm in Tampa experienced with construction lien law.
Waiver and Release Upon Progress (Partial) Payment
The waiver and release of lien upon progress, also known as “partial” payment form is used to partially waive or release a lien, right to claim of lien or claim on any bond for labor, material, or services provided in consideration of payment made by the party receiving the services. The important factor for contractors to remember when providing a waiver and release upon partial payment form is to release lien rights only to the extent that payment is made. It is recommended to consult with a Tampa construction law firm to assist with these forms.
Waiver and Release Upon Final Payment
The waiver and release upon final payment form identifies the contractor, the property, and owner of the property that has been furnished labor, materials, or services for the construction of improvements made to the property. The form is executed by the contractor in accordance with F.S. 713.20 for the purpose of waiving and releasing a lien or the right to claim a lien after final payment has been accepted.
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Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.