CALIFORNIA introduces NEW WAIVER and RELEASE forms for those holding valid Mechanic’s Lien, Stop Payment Notice, and /or Payment Bond Claim Rights.
The new Forms will be required as of July 1, 2012 to facilitate the release of Mechanic’s Lien, Stop Notice, and Bond Claim Rights on Private and Public construction projects.
The existing:
CONDITIONAL WAIVER AND RELEASE UPON PROGRESS PAYMENT
UNCONDITIONAL WAIVER AND RELEASE UPON PROGRESS PAYMENT
CONDITIONAL WAIVER AND RELEASE UPON FINAL PAYMENT
UNCONDITIONAL WAIVER AND RELEASE UPON FINAL PAYMENT
will take on a slightly different look in July of 2012.
The changes to these commonly used forms are driven by Senate Bill 189, which was chaptered and became law this year.
The release forms now include language, which specifies not only the mechanic’s lien, but also the Stop Payment Notice (previously known as a Stop Notice) and Payment Bond Rights (also known as Payment Bond Claim Rights).
The new waiver and release forms also include language under the title: “Exceptions” which specify Retentions, Extras for which the claimant has not received payment. Reference to previously issued conditional waivers and releases for which the claimant has not received payment and detailed reference to:
“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”.
These new forms will be available from CRM Lien Services, Inc. on January 1, 2012 and are incorporated into the 2012 version of CRM ReleaseMaker.
