New State Specific Waiver and release forms from the AIA: Utah  

Since the AIA just released updated templates for lien waiver and release forms, it's good to have a quick refresh of what they are and how to use them. Utah has statutory measures to regulate lien waivers and release forms for construction law. If you're considering entering into a construction agreement, you're going to know when, where, and how to use these waivers, as they can be very crucial to the success and validity of a project, so let's make sure we've got the basics covered. where, and how to use these waivers as they can be very crucial to the success and validity of a project, so let’s make sure we’ve got the basics covered.  

What is a lien waiver and release? 

 Generally, a lien waiver and release are proof of payment in a construction agreement. A lien waiver can come from a contractor, subcontractor, project lender, developer, or supplier that holds a mechanics lien, stating that they have been paid in full for their services up to that point, waiving future lien rights to the property in question. If done incorrectly, these documents can have highly damaging effects on the funding of a construction project. Therefore, these documents must be executed in the correct format, ideally by a proper construction litigation lawyer.   

What Requirements? 

 In Utah, for a lien waiver and release to be considered binding, it must include four specific parts. 

1. First and foremost, a lien waiver must begin with a statement voicing that the document is intended by those signing it to be a waiver of lien rights, under Utah Law. 

2. Additionally, the form must have specific information regarding the job and the rights being waived, such as:

1. Name and location of the property in question 

2. Name of the party that hired those waiving their rights 

3. Payment amount, subject to the waiver 

4. A notice to the waiving party that they are giving up certain rights 

5. A statement that waiving party had paid in full all payments up to this point or has a valid plan in place to do so 

Utah has created templates for these forms that meet all of the above requirements as long as they are filled out correctly. However, in Utah only, one may draft and create their own form of this document, as the Utah Code 38-1a-802, 2(ii)b. states it must be "substantially the same form," or in other words, it must meet the requirements above. Be careful if this is your chosen option, as missing any key points of a waiver and release will cause the form to be invalid.   the above requirements as long as they are filled out correctly. However, in Utah only, one may draft and create their own form of this document, as the Utah Code 38-1a-802, 2(ii)b. states it must be "substantially the same form", or in other words, it must meet the requirements above. Be careful if this is the option you choose, as missing any of the key points of a waiver and release will cause the form to be invalid.  

What do I need to get, and where can I get it? 

 The state of Utah provides two forms of waiver and releases:  

1. The Conditional Progress Payment Lien Waiver 

2. Final Payment Lien Waiver 

Templates for both Documents can be found on the official AIA webpage:  

(AIA Contracts Page)  

Or direct links to each can be found below 

1. G901UT-2022, Utah Conditional Waiver and Release Upon Progress Payment 

2. G903UT-2022, Utah Waiver and Release Upon Final Payment   

What do I do now?

Waiver and Release forms are vital in any construction law agreement, so getting them right is essential. Luckily our team at Sumsion Business law can help. Our talented attorneys and paralegals are ready and excited to help you with your construction, transactional, and litigation needs. If you're prepared to ensure the safety of your constructional agreement, reach out to Sumsion Business Law today!constructional agreement, reach out to Sumsion Business Law today.

_{(Sources: Levelset.com, Utah Code, AIAcontracts.org)}

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