In-Depth Info For The California #3 Conditional Upon Final Lien Waiver Release Form

First an image of the #3 release form with reference numbers assigned to the sections… :o)

A Quick Yet Important Note

The majority of information on this #3 document will be the same as what's on the #1 and #2 documents for this same project.

So if you have that #1 or #2 Conditional/Unconditional Upon Progress Release in front of you, you can either copy and paste the info from 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 #3 form is because even though it's close to the text in the #1 form it's not exact.

The differences between the #1 Conditional On Progress and the #3 Conditional On Final are strong enough that you will release (or even lose) your lien rights IN FULL on the project - meaning you can *never* file a lien …

Meaning you better be darn sure that you've been paid IN FULL (including retentions, change orders, etc.) before you use the #3.

And last but not least sometimes the #1 and #2 forms aren't used on a project; sometimes there's just one payment on a project and all that's required are the #3 and #4 waivers to manage that payment.

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/#2 release form was done as a precursor to this #3 release form then the information on the #3 will match the information on the #1/#2 release forms.

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/#2 release form was done as a precursor to this #3 release form then the information on the #3 will match the information on the #1/#2 release forms.

    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/#2 release form was done as a precursor to this #3 release form then the information on the #3 will match the information on the #1/#2 release forms.

    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/#2 release form was done as a precursor to this #3 release form then the information on the #3 will match the information on the #1/#2 release forms.

    Section 5 - Maker Of The Check

    There is no guidance within the law regarding how to find out who the maker of the check is.

    Typically the maker would be your customer but it could also be a lender or escrow company or … ?

    Chances are it'll be the same as your prior release forms but your best bet is probably still to ask your customer to tell you the name of the person/company that will be writing the check.

    Section 6 - Dollar Amount

    This one's easy! It's the dollar amount that you're invoicing for.

    Section 7 - Check Payable To

    This one's also easy … put in there who you want the check made out to. :)

    Through Date

    You'll notice that I didn't include a 'Section #' and that there's no 'through date' on the #3 form.

    That's because this form is used ONLY when you are invoicing for the FINAL amount of money owed to you on the project.

    Do NOT submit this form unless you are absolutely certain that it's the final amount. If it turns out that there's still funds owing you could be out of luck because the #3 form clearly states that once you've been paid the dollar amount that you indicated you give up 100% of your lien rights at that moment.

    If you're lucky they'll go ahead and pay you for the amount(s) you missed but … my guess on that is nah it 'aint happening…

    If a #1/#2 release form was done as a precursor to this #3 release form then the information on it will match the information on the #1/#2 release forms.

    Section 8 - Disputed Amount

    If there is any type of dispute on the project that affects your payment and/or how much you're paid be sure to include it on this line.

    The old law vs. the new law

    The way the California Civil law was written (3262(d)(3) before it was replaced in 2012 with CCV-8136), if you signed the #3 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) on the project once you'd been paid the dollar amount that you indicated.

    While the new laws (CVV 8132, 8134, 8136, 8138) are written in the Contractor's favor there is only ONE exception allowed with this document:

    Disputed claims for any extras on the project

    The #1 and #2 allow for many more exceptions but because the #3 is a progress on FINAL payment the exceptions are gone (except for the one above).

    Personally I wouldn't rely on any exceptions because that could end up leaving you looking at:
    • 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.
    As I've Said Elsewhere "What a Nightmare!"

    Best to make sure that all issues in relation to payment on the project are taken care of before you issue the #3.

    If a #1/#2 release form was done as a precursor to this #3 release form then the information on the #3 will match the information on the #1/#2 release forms.

    Section 9, 10, and 11 - 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 12 - 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.

    It's Old Hat - You're A Pro

    These forms can seem intimidating but once you've done a couple you'll be a pro, it'll be old hat to you! Really! :o)

    Here's to finishing out a great project and on to the next one!! :o)

    And also here's a link to the #1 California Conditional Lien Waiver/Release On Progress Payment Form - should you decide you need it right now instead of the #3.

    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! Kind of an interesting business plan eh? ;o)

    California Conditional Upon Final Lien Waiver Release (#3)
    $14.95
    RLS3-CA
    California Construction Lien Waiver Release Forms Collection
    $34.95
    CARPWD