First an image of the California #2 Unconditional Lien Waiver and Release Upon Progress Payment form - with reference numbers assigned to the sections… :o)
And now for an explanation of the sections…
Before getting into that though just a quick note that the majority of information on this #2 document will be the same as what's on the #1 document for this same invoice/payment.
So if you have that #1 Conditional Progress Release in front of you, you can either copy and paste it if you've got it right there on your computer or you can read it from the hard copy and enter it into your computer.
The reason I've gone ahead and explained the individual sections for this form, even though it's pretty much the same info as the #1 form, is because sometimes a #1 form isn't used - just the #2 when the payment has been made.
Section 1 - Name of Claimant
Typically the claimant is the person/entity completing the form, or the person/entity that the person completing the form is completing it for.
If a #1 release form was done as a precursor to this #2 release form then the information on the #2 will match the information from the #1 release.
Section 2 - Name of Customer
Your customer is the person/entity that you're contracted with.
If you're contracted with a direct contractor then that's who/what you'll enter on that line.
If you're contracted with a subcontractor then that's who/what you'll enter on that line.
If you're contracted directly with the Owner then the Owner's name would go there.
If a #1 release form was done as a precursor to this #2 release form then the information should match the information from the #1 release.
Section 3 - Job Location
Enter the job location whether it be the address or property location descriptions, etc.; just be sure to make it as descriptive as possible
If a #1 release form was done as a precursor to this #2 release form then the information on the #2 will match the information on the #1 release.
Section 4 - Owner
In this field put the name(s) of the Owner(s) of the property that you are performing work on.
If you're contracted directly with the Owner then the Owner's name will appear in the field for the Customer's Name as well as the field for the Owner's name.
If a #1 release form was done as a precursor to this #2 release form then the information you'll enter on the #2 will match the information on the #1 release.
Section 5 - Through Date
What that means is the date that you've been paid through.
For example say you'll be on a project for 3 months and you invoice monthly.
Your first month is January.
Sometime near the beginning of February you'll be invoicing for the entire month of January (through January 31 - nothing for February).
Hopefully you'll be paid quickly but… don't hold your breath. ;o)
The last date that the payment pays you through is the date that gets entered into the 'through date' field.
Presumably this date would be the same date that was on the #1 waiver/release if there was one issued during the invoice process.
If the amount is different then there's an issue that will most likely require a quick chat with an attorney.The old law vs. the new law
The way the California Civil law (3262(d)(2) - before it was replaced in 2012 by CCV-8134) was written, if you signed the #2 release form and there was even just one open issue/dispute you still released your lien rights to all work performed (typically including those disputed items) through the date on the #2 release form.
Even putting a note on the document stating what particular items hadn't yet been paid for wasn't ever guaranteed to stand up in court.
The way the new laws (CVV 8132, 8134, 8136, 8138) are written the Contractor is definitely favored and there's quite an onus on the 'end user' - the Owner.Now the law allows for certain exceptions:
But I wouldn't count on exceptions as a saving grace because that means you could be looking at:
- Extras for which the claimant has not received payment
- Contract rights including
- A right based on rescission, abandonment, or breach of contract, and
- The right to recover compensation for work not compensated by the payment
What a Nightmare!
- A legal battle - with your customer stating that you signed away your rights
- Attorney fees - that most likely will not be reimbursed even if ordered by the court
- The knowledge - or lack thereof - of the judge (and trust me when I say that they are not always correct, not by a long shot!), etc.
Best to make sure that all issues in relation to an invoice/payment/waiver-release are taken care of before you do any more work on the project.
So anyhow the 'through date' is the date you've been paid through.
If a #1 release form was done prior to this #2 release form then the information on the #2 will pretty much match the information from the #1 release.* As far as the 'onus on the Owner' in the end it's the Owner that loses if there's a lien filed on his home. So now it's a more important issue than it was that the Owner verify that payments have been made.
Section 6 - Progress Payment Amount
This one's easy! It's the dollar amount that you've been paid (which is presumably the same amount that appears on the #1 form if a #1 was done with the invoice).
Section 7, 8, and 9 - Claimant's Signature, Title, and Date
The person listed as the claimant will be the one to sign here; the person's title can be filled in with the computer before printing the form or after, it's entirely your choice. :o) Same with the date of the signature.
Section 10 - Job/Acct. #
This section is not required; it's provided to help with tracking your projects but you're not required to put anything in there.
These forms can seem intimidating but once you've done a couple you'll be a pro, it'll be old hat to you!
Here's to a smooth project and all bills being paid on time!! :o)
And also here's a link to the #1 California Conditional Lien Waiver/Release Form
- should you decide you need it right now rather than the #2.
The #2 'seals the deal' on each payment meaning you may no longer have lien rights on the portion of the project that you completed through the 'through date' on the waiver/release form.
Take a look at the entire package
Before deciding to purchase this individual form please do take a look at the package - when you purchase the entire package
you'll pay less than the cost of purchasing two of the forms!
Not to mention the little fact that there are a couple pretty cool free bonuses in the package!
Why sell the package for so low (or the individual forms for so high)?
The forms are worth every penny and THEN SOME; they pay for themselves within just a few uses at most.
But, just like any merchant, I'd like a higher sale but unlike so many merchants, I want to make a higher sale while at the same time giving a good discount. ;o)
That's why the package is priced so extremely low and comes with bonuses - so that you *save* money while I *make* money.
You'll actually save more money than I'll make! hmm… Maybe I need to re-think that price! Grab the package while I'm still thinking… ;o)