Billing & AR

What is lien waiver?

Definition

A document in which a contractor, sub, or supplier gives up some or all of its lien rights in exchange for payment.

The four common types

Conditional progress: waives rights for a progress payment once it clears
Unconditional progress: waives rights for a progress payment already received
Conditional final: waives all rights once final payment clears
Unconditional final: waives all rights after final payment is received

Requirements vary by state, and some states mandate statutory forms. Never sign an unconditional waiver before the funds have actually cleared.

Pay application (AIA G702/G703)

The progress billing request a contractor submits to the owner, typically on the AIA G702 application form with a G703 continuation sheet listing progress by line item.

Retainage

A percentage of each progress payment, commonly 5% to 10%, that the owner or GC holds back until the job or a phase is substantially complete.

Guides that cover this

Billing & ARAug 12, 2026

Retainage Accounting: How to Track and Collect What You're Owed

Retainage can lock up 5% to 10% of every contract for months. How to track receivable and payable retainage and get it released faster.

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