Conditional Lien Waiver and Release on Progress Payment (Mechanic's Lien) (Texas)

This legal template is designed to establish a conditional lien waiver and release agreement for progress payments related to a mechanic's lien in the state of Texas, operating within the legal framework of the United States. The document outlines the terms and conditions under which a contractor, subcontractor, or supplier will waive their right to file or enforce a mechanic's lien in exchange for receiving or securing a progress payment.

The template ensures that all parties involved in a construction project, including property owners, contractors, and suppliers, are protected from future disputes or claims arising from outstanding payments. It contains detailed sections that specify the amount of the progress payment, the specific work completed or materials delivered, and the condition for the waiver to be effective.

By signing this conditional lien waiver and release, all parties involved acknowledge that they have received payment or have a guarantee of payment for the work or materials provided. It is important to understand that the waiver is conditional, which means that it is contingent upon the payment being successfully processed or the payment instrument being honored by the paying party. If the payment fails or is dishonored, the lien rights will remain intact.

This legal template is a crucial tool in the construction industry, where mechanic's liens are a common form of protection and assurance for contractors, subcontractors, and suppliers to secure payment for their services or materials. It ensures transparency and clarity in financial transactions while facilitating the progress of construction projects and reducing the risk of legal disputes.