Arizona Mechanics Lien Waiver and Release Forms

ARIZONA MECHANICS LIEN WAIVER AND RELEASE FORMS

Pursuant to A.R.S. § 33-1008

IMPORTANT PRACTICE NOTES

Statutory Compliance Requirement

Under A.R.S. § 33-1008, no oral or written statement purporting to waive, release, or otherwise adversely affect a mechanics lien claim is enforceable unless:

1. It is pursuant to a waiver and release prescribed by this section; OR
2. The claimant had actually received payment in full for the claim.

A waiver and release is effective only if it follows substantially one of the four forms set forth in A.R.S. § 33-1008 and is signed by the claimant or the claimant's authorized agent.

When to Use Each Form

Key Distinctions

Conditional Waivers:

• Become effective ONLY when the check has been properly endorsed AND paid by the bank on which it is drawn
• Protect claimant's lien rights until funds are actually received
• Recommended when exchanging a waiver for a check or promised payment

Unconditional Waivers:

• Effective IMMEDIATELY upon signing
• Enforceable even if payment has not been received
• Use ONLY after confirming payment has cleared

Arizona-Specific Requirements

☐ Arizona lien waivers are NOT required to be notarized

☐ Waivers must "substantially" follow the statutory forms - minor deviations may be acceptable but significant changes will render the waiver unenforceable

☐ For conditional waivers, there must be evidence of payment to the claimant for the waiver to be effective

FORM 1: CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT

A.R.S. § 33-1008(D)(1)

Use this form when the claimant is required to execute a waiver and release in exchange for or to induce a progress payment AND the claimant is not in fact paid in exchange for the waiver, or a single payee check or joint payee check is given in exchange for the waiver.

CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT

STATE OF ARIZONA

Project: [________________________________]

Job No.: [________________________________]

On receipt by the undersigned of a check from [________________________________] (Maker of Check) in the sum of $[________________________________] payable to [________________________________] (Payee or Payees of Check) and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release any mechanic's lien, any state or federal statutory bond right, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to claim or payment rights for persons in the undersigned's position that the undersigned has on the job of [________________________________] (Owner) located at [________________________________] (Job Description) to the following extent:

This release covers a progress payment for all labor, services, equipment or materials furnished to the jobsite or to [________________________________] (Person with Whom Undersigned Contracted) through [__/__/____] (Date) only and does not cover any retention, pending modifications and changes or items furnished after that date.

Before any recipient of this document relies on it, that person should verify evidence of payment to the undersigned.

The undersigned warrants that he either has already paid or will use the monies he receives from this progress payment to promptly pay in full all of his laborers, subcontractors, materialmen and suppliers for all work, materials, equipment or services provided for or to the above referenced project up to the date of this waiver.

Dated: [__/__/____]

Company Name: [________________________________]

Signature: ______________________________

Print Name: [________________________________]

Title: [________________________________]

FORM 2: UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT

A.R.S. § 33-1008(D)(2)

Use this form when the claimant is required to execute a waiver and release in exchange for or to induce a progress payment AND the claimant asserts in the waiver that the claimant has in fact been paid the progress payment.

UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT

STATE OF ARIZONA

NOTICE: THIS DOCUMENT WAIVES RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMENT IS ENFORCEABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HAVE NOT BEEN PAID. IF YOU HAVE NOT BEEN PAID, USE A CONDITIONAL RELEASE FORM.

Project: [________________________________]

Job No.: [________________________________]

The undersigned has been paid and has received a progress payment in the sum of $[________________________________] for all labor, services, equipment or material furnished to the jobsite or to [________________________________] (Person with Whom Undersigned Contracted) on the job of [________________________________] (Owner) located at [________________________________] (Job Description) and does hereby release any mechanic's lien, any state or federal statutory bond right, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to claim or payment rights for persons in the undersigned's position to the following extent:

This release covers a progress payment for all labor, services, equipment or materials furnished to the jobsite or to [________________________________] (Person with Whom Undersigned Contracted) through [__/__/____] (Date) only and does not cover any retention, pending modifications and changes or items furnished after that date.

The undersigned warrants that he either has already paid or will use the monies he receives from this progress payment to promptly pay in full all of his laborers, subcontractors, materialmen and suppliers for all work, materials, equipment or services provided for or to the above referenced project up to the date of this waiver.

Dated: [__/__/____]

Company Name: [________________________________]

Signature: ______________________________

Print Name: [________________________________]

Title: [________________________________]

FORM 3: CONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT

A.R.S. § 33-1008(D)(3)

Use this form when the claimant is required to execute a waiver and release in exchange for or to induce a final payment AND the claimant is not in fact paid in exchange for the waiver, or a single payee check or joint payee check is given in exchange for the waiver.

CONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT

STATE OF ARIZONA

Project: [________________________________]

Job No.: [________________________________]

On receipt by the undersigned of a check from [________________________________] (Maker of Check) in the sum of $[________________________________] payable to [________________________________] (Payee or Payees of Check) and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release any mechanic's lien, any state or federal statutory bond right, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to claim or payment rights for persons in the undersigned's position that the undersigned has on the job of [________________________________] (Owner) located at [________________________________] (Job Description) to the following extent:

This release covers the final payment to the undersigned for all labor, services, equipment or materials furnished to the jobsite or to [________________________________] (Person with Whom Undersigned Contracted), except for disputed claims in the amount of $[________________________________].

Before any recipient of this document relies on it, that person should verify evidence of payment to the undersigned.

The undersigned warrants that he either has already paid or will use the monies he receives from this final payment to promptly pay in full all of his laborers, subcontractors, materialmen and suppliers for all work, materials, equipment or services provided for or to the above referenced project.

Dated: [__/__/____]

Company Name: [________________________________]

Signature: ______________________________

Print Name: [________________________________]

Title: [________________________________]

FORM 4: UNCONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT

A.R.S. § 33-1008(D)(4)

Use this form when the claimant is required to execute a waiver and release in exchange for or to induce a final payment AND the claimant asserts in the waiver that the claimant has in fact been paid.

UNCONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT

STATE OF ARIZONA

NOTICE: THIS DOCUMENT WAIVES RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMENT IS ENFORCEABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HAVE NOT BEEN PAID. IF YOU HAVE NOT BEEN PAID, USE A CONDITIONAL RELEASE FORM.

Project: [________________________________]

Job No.: [________________________________]

The undersigned has been paid in full for all labor, services, equipment or material furnished to the jobsite or to [________________________________] (Person with Whom Undersigned Contracted) on the job of [________________________________] (Owner) located at [________________________________] (Job Description) and does hereby waive and release any right to mechanic's lien, any state or federal statutory bond right, any private bond right, any claim for payment and any rights under any similar ordinance, rule or statute related to claim or payment rights for persons in the undersigned's position, except for disputed claims for extra work in the amount of $[________________________________].

The undersigned warrants that he either has already paid or will use the monies he receives from this final payment to promptly pay in full all of his laborers, subcontractors, materialmen and suppliers for all work, materials, equipment or services provided for or to the above referenced project.

Dated: [__/__/____]

Company Name: [________________________________]

Signature: ______________________________

Print Name: [________________________________]

Title: [________________________________]

ADDITIONAL PRACTICE GUIDANCE

Disputed Claims on Final Waivers

☐ Both final waiver forms (conditional and unconditional) include a section to list disputed claims

☐ If you have disputed amounts, you MUST specifically list the dollar value in the designated section BEFORE signing

☐ Failure to list disputed amounts in a final waiver may permanently waive your right to pursue payment for those disputed items

☐ The unconditional final waiver specifies "disputed claims for extra work" while the conditional final waiver uses "disputed claims" generally

Verification Requirements

☐ For conditional waivers, recipients should verify evidence of payment to the claimant before relying on the waiver

☐ Section 33-1008(A) identifies a paid, endorsed single- or joint-payee check or the claimant's written acknowledgment of payment as evidence; confirm that the claimant actually received the payment

Common Mistakes to Avoid

☐ DO NOT sign an unconditional waiver until payment has been received AND cleared

☐ DO NOT modify the statutory language substantially - the waiver must follow the statutory form

☐ DO NOT leave the disputed claims section blank on final waivers if disputes exist - insert $0.00 if no disputes

☐ DO NOT forget to verify the check maker and payee information on conditional waivers

Retention Exclusion

☐ Progress payment waivers (both conditional and unconditional) specifically exclude retention

☐ The final payment forms do not reserve retention; identify any unpaid retention or disputed amount before signing one

☐ Ensure the "through date" on progress waivers accurately reflects the work period covered

Required Form Information Checklist

For All Forms:
☐ Project name or description
☐ Job number (if applicable)
☐ Owner name
☐ Job location/description
☐ Person with whom undersigned contracted
☐ Date of waiver
☐ Company name, signature, and title; printed name helps identify the signer

Additional for Conditional Waivers:
☐ Maker of check
☐ Amount of check
☐ Payee(s) of check

Additional for Progress Payment Waivers:
☐ "Through date" for work covered

Additional for Final Payment Waivers:
☐ Disputed claims amount (enter $0.00 if none)

STATUTORY AUTHORITY

A.R.S. § 33-1008(A): Requires the claimant's signed waiver substantially in a statutory form; a conditional release also requires evidence of payment.

A.R.S. § 33-1008(B): States that no oral or written statement purporting to waive or release a claim is enforceable unless it follows the prescribed forms or the claimant has received full payment.

A.R.S. § 33-1008(C): Preserves an accord and satisfaction of a bona fide dispute or settlement of a pending court action if it specifically references the lien or bond claim.

A.R.S. § 33-1008(D): Contains the four prescribed statutory forms that must be substantially followed.

This document contains the four waiver forms prescribed by A.R.S. § 33-1008. The statute separately addresses full payment, bona fide accords and satisfactions, and settlements of pending court actions. Use of a waiver that does not substantially follow the applicable form may make the waiver unenforceable.