National Roofing Legal Resource Center

Contract provision addresses avoiding unintentional waiver and release of claims through acceptance of payment

General contractors and owners routinely require roofing contractors to execute lien waivers and releases each time a roofing contractor submits a payment application. The waiver and release form drafted by the general contractor or owner may be overly broad and contain language that releases or waives the roofing contractor's right to pursue a pre-existing claim and might even apply to the roofing contractor's right to receive retainage. If a roofing contractor is working on a project where a dispute arises and the roofing contractor believes additional compensation is due, it needs to be sure to preserve its rights to pursue a claim in accordance with the notice and procedural requirements stated in the contract, and it must not inadvertently waive or release its rights, including its right to receive retainage, by signing an overly broad lien waiver when submitting a progress payment application. When required to submit a waiver or release form in conjunction with a payment application, roofing contractors should use a provision similar to the one below and always be sure to include language excepting retainage, work that is to be the subject of a change order that has not yet been processed, and claims identified by the roofing contractor before or when submitting the payment application.

Avoiding Unintentional Waiver and Release of Claims through Acceptance of Payment: Upon receipt in full of the requested progress payment, roofing contractor acknowledges no additional sums are due roofing contractor for work performed through the date of the progress payment application and roofing contractor further agrees to waive lien rights up to the amount of payment received, except that this waiver and release does not include retainage, change orders not yet processed and claims previously identified in writing.


10/30/2017



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