# Lien Waiver Tracking: Control Subcontractor Payments Draw by Draw

> Match each lien waiver to the claimant, job, draw, and through date, track lower-tier and joint-check waivers, and test waiver holds in your ERP.

- Canonical page: https://procindex.com/blog/lien-waiver-tracking
- Author: ProcIndex Editorial Team
- Published: 2026-06-03
- Updated: 2026-11-10
- Topics: construction, lien-waiver, accounts-payable, subcontractor-payments

A drywall subcontractor sends draw 5 with a signed waiver attached. The signature is real, the form is the right one, and the waiver is for draw 4. Someone files it under "waiver received," the payment goes out, and the gap surfaces months later when the subcontractor's supplier records a lien.

A waiver is only useful if it matches the payment it is supposed to cover. That means tracking claimant, job, payment stage, through date, amount, and exceptions for every draw, and keeping that record next to the payable rather than in a folder.

This guide covers the AP side: what to check, how to keep the log, how lower-tier and joint-check waivers fit in, and how the main construction ERPs record and enforce waiver requirements. Lien law is state-specific. Have counsel confirm which forms, wording, and timing apply to each project.

## The four waiver types and when each one shows up

Some states prescribe waiver forms by statute. California's Contractors State License Board publishes separate conditional and unconditional forms for progress and final payments and explains that a conditional waiver depends on the claimant actually receiving payment ([CSLB waiver and release guidance](https://cslb.ca.gov/Consumers/Legal_Issues_For_Consumers/Mechanics_Lien/Conditional_And_Unconditional_Waiver_Release_Form.aspx)). Other states use different forms or none at all.

| Form | What it generally does | When AP usually sees it |
| --- | --- | --- |
| Conditional progress | Releases rights through a date, effective only once the stated payment is received | With the pay application, before you pay |
| Unconditional progress | Releases rights through a date because payment was received | After the payment clears, often with the next draw |
| Conditional final | Releases remaining rights once final payment is received | With the final payment request |
| Unconditional final | Releases remaining rights because final payment was received | After final payment clears |

The practical rhythm on many jobs: a conditional waiver for the current draw comes in with the application, and an unconditional waiver for the prior draw comes in once that money has landed. Your contract and the project's requirements decide the actual sequence.

## Match the waiver to the payment, not to the vendor

A signature tells you someone signed. It does not tell you whether you have the document this payment requires. Check each field against the payment package.

| Check | Compare against |
| --- | --- |
| Claimant | The legal name on the subcontract or supplier record, not a DBA on the invoice |
| Job | Project name and number on the subcontract |
| Payment stage | Progress or final, matching the form the project requires |
| Through date | The period end on the pay application this payment covers |
| Amount | The payment amount on a conditional form, or the amount received on an unconditional form, where the form states one |
| Exceptions | Any amounts or claims the signer excluded |
| Payment evidence | The proposed payment, or proof of payment for an unconditional form |
| Lower tiers | Supplier and sub-subcontractor waivers the contract requires |

If anything does not match, record the discrepancy and send it to the person authorized to review it. Keep the original document and the corrected one together with the payment package. Follow your release policy while the question is open.

### Worked example: one subcontractor, three draws (illustrative)

| Draw | Period through | Net payment | Conditional on file | Unconditional on file | Status |
| --- | --- | --- | --- | --- | --- |
| 3 | Mar 31 | $38,250 | Yes, through Mar 31, $38,250 | Yes, through Mar 31 | Complete |
| 4 | Apr 30 | $42,750 | Yes, through Apr 30, $42,750 | Missing | Unconditional due with draw 5 |
| 5 | May 31 | $45,000 | Received, but dated through Apr 30 | Not yet due | Hold: wrong through date |

The waiver that came with draw 5 is a duplicate of the draw 4 conditional. It is a valid document for the wrong payment. The draw 5 hold stays until a conditional through May 31 for $45,000 arrives. Separately, the draw 4 unconditional is still outstanding even though that payment was made in May. If your project requires the prior draw's unconditional before releasing the next payment, draw 5 has two open items, not one.

Draws 3 and 4 together put $81,000 ($38,250 + $42,750) in the subcontractor's hands, and only $38,250 of it is covered by an unconditional waiver. Your log should make that gap visible to anyone who opens it.

## Keep a waiver log by draw

Build one row per required waiver per payment, not one row per vendor. A vendor-level checkbox is how the draw 5 problem above gets through.

Minimum fields:

- Subcontractor or supplier (claimant), tier, and job
- Draw or invoice number and period through date
- Form required (conditional/unconditional, progress/final)
- Amount on the form and amount of the related payment
- Date received, reviewer, and result (accepted, rejected, exception)
- Exceptions listed by the signer
- Link to the stored document and any replacement

When a subcontractor sends revised paperwork, keep both versions and record who confirmed the replacement. When AP is asked to clear a hold, the reviewer should see what changed, who authorized the release, and when.

## Lower-tier waivers and joint checks

A subcontractor's own unconditional waiver says nothing about whether it paid its supplier. If the contract requires lower-tier waivers, track them as separate rows tied to the same draw. Show the payment reviewer both the subcontractor's status and the supplier's, so a signed subcontractor waiver is never read as proof the supplier signed.

When lien exposure from a supplier is high, some general contractors pay the subcontractor and supplier together with a joint check. Start from the signed joint-check agreement and the invoices it covers. Confirm both legal payee names and who approved the arrangement before preparing the payment.

| Check | Evidence |
| --- | --- |
| Payees | Signed instructions and verified legal names for both parties |
| Job and invoices | Subcontract, supplier invoice, related pay application |
| Amounts | Check total, allocation by invoice, any balance left on either side |
| Waivers | Documents required for this payment from each payee |

Illustrative: an $18,000 joint check pays part of the subcontractor's approved draw. Of that, $11,400 settles the subcontractor's supplier invoice for material on the job and $6,600 goes to the subcontractor. Your payable is to the subcontractor, so record the full $18,000 against the subcontractor's bill, save the allocation, and collect waivers from both payees that reflect their share. After payment, link the check to the invoices and confirm how the amounts were applied. If the check is voided or reissued, trace the original transaction before approving a replacement.

Trimble's Vista documentation describes two-party AP checks, with separate procedures for computer-generated and handwritten checks ([Trimble two-party check guide](https://help.trimble.com/doc/vista/vista/accounting/accounts-payable/payments/checks/about-two-party-ap-checks)).

## How construction ERPs record waiver requirements

The documentation tells you what each system can do. Your configuration decides what actually happens, so test it.

### Sage 300 CRE: when the waiver record is created

Sage documents three possible creation events for partial lien-waiver records: invoice posting, selection for payment, and payment. Conditional and unconditional settings are reviewed separately. Sage also notes that changing the company's through-date default applies to new jobs, so an existing job may still carry the old setting ([Sage troubleshooting article](https://us-kb.sage.com/portal/app/portlets/results/botviewsolution.jsp?solutionid=223924750039744)).

If AP selected an invoice for payment and there is no waiver record, check which event the waiver type is configured to use before creating one by hand. In a test company, log what appears after posting, after payment selection, and after payment, for each waiver type.

### Vista: compliance codes on subcontracts and POs

Trimble documents that compliance groups can be assigned in Project Management, while verification and tracking occur in the destination module, Subcontract Ledger or Purchase Order. If verification is enabled and compliance is not met, Vista displays a warning ([Trimble compliance tracking](https://help.trimble.com/doc/vista/vista/project-management/subcontracts/about-compliance-tracking-on-subcontracts-and-pos)). When a warning appears, record the compliance code, the subcontract or PO that carries it, and the supplier whose document is missing.

### CMiC: vendor, contract, or invoice level

CMiC documents tracking subcontract compliance at vendor, contract, or invoice level ([CMiC Subcontract Management overview](https://docs.cmicglobal.com/portal/Content/E_Reference_Material/SC_-_Subcontract_Management/Reference/Overview/Functionality.htm)). Its Request for Payment Details tab opens a Compliance Status window ([CMiC Request for Payment details](https://docs.cmicglobal.com/portal/Content/E_Reference_Material/SC_-_Subcontract_Management/Reference/Payments/Details_Tab.htm)). A vendor-level record can look complete while a specific contract or invoice still needs a document, so confirm which level each project uses.

### FOUNDATION: payment holds until waivers are signed

Foundation Software describes holding payments until lien waivers are signed ([Foundation AP overview](https://www.foundationsoft.com/learn/how-foundation-simplifies-accounts-payable-processes/)). Test how your installation records the requirement, which role can update it, and what AP sees on the next payment run.

### Acumatica: date basis and grouping on generated waivers

Acumatica documents settings in Compliance Preferences for the date basis and for grouping payment amounts when generating waivers. Options include bill, posting-period end, and payment dates in applicable settings, and grouping by project, commitment, or task ([Acumatica Compliance Preferences](https://beacon.acumatica.com/r/Form-Reference-Guide/Construction-Forms/Compliance-Preferences?contentId=WMnmtHk3exkQX4vs2CnaQg)). In a test company, use a bill date, period-end date, and payment date that all differ, and check which date lands on each generated form.

| System | Where to look first | The mistake to test for |
| --- | --- | --- |
| Sage 300 CRE | Waiver creation event and job through-date setting | Waiver record "missing" because its creation event has not happened yet |
| Vista | Compliance code on the SL or PO | A lower-tier supplier gap hidden behind a signed subcontractor waiver |
| CMiC | Compliance level and Compliance Status window | Vendor-level status masking an open contract or invoice requirement |
| FOUNDATION | Waiver hold on the vendor, job, invoice | A corrected waiver releasing an unrelated invoice |
| Acumatica | Compliance Preferences date basis and grouping | One form combining commitments the project reviews separately |

## Test that a waiver clears only the payment it covers

Whatever the system, run this test before trusting the hold. Set up two open invoices for the same subcontractor on different jobs. Attach a corrected waiver to just one. Regenerate the proposed payment list and look for both invoices by job. The one without a matching waiver should still be held. Save that comparison with the accepted waiver so the payment reviewer can see exactly what changed.

For how waiver holds fit with other payment conditions such as insurance and certified payroll, see the [subcontractor compliance guide](https://procindex.com/blog/subcontractor-compliance). For the general mechanics of holds in the payment run, see [invoice holds and payment blocks](https://procindex.com/blog/invoice-holds-and-payment-blocks). For coding and posting the draw itself, see [construction AP automation](https://procindex.com/blog/construction-ap-automation).

## What goes wrong

- **Prior-draw waiver accepted for the current draw.** Always compare the through date with the application period.
- **Claimant name mismatch.** A waiver signed by an affiliate or under a trade name may not match the subcontract party.
- **Exceptions ignored.** A waiver that excludes a disputed change order amount is still a waiver, but not for that amount.
- **Unconditional never collected.** The conditional covered the payment you were about to make. Once paid, chase the unconditional.
- **Final waiver missing at closeout.** Retainage release is often the last payment and the easiest to send without a final waiver. The [construction retainage guide](https://procindex.com/blog/construction-retainage) covers that release.

## Three checks before the payment run

1. Compare the waiver's through date with this draw's period end, not just the job and signature.
2. Confirm the prior draw's unconditional is on file if the project requires it.
3. Open the proposed payment run and confirm only waiver-complete draws are selected.

## Sources

- https://cslb.ca.gov/Consumers/Legal_Issues_For_Consumers/Mechanics_Lien/Conditional_And_Unconditional_Waiver_Release_Form.aspx
- https://us-kb.sage.com/portal/app/portlets/results/botviewsolution.jsp?solutionid=223924750039744
- https://help.trimble.com/doc/vista/vista/project-management/subcontracts/about-compliance-tracking-on-subcontracts-and-pos
- https://docs.cmicglobal.com/portal/Content/E_Reference_Material/SC_-_Subcontract_Management/Reference/Overview/Functionality.htm
- https://docs.cmicglobal.com/portal/Content/E_Reference_Material/SC_-_Subcontract_Management/Reference/Payments/Details_Tab.htm
- https://www.foundationsoft.com/learn/how-foundation-simplifies-accounts-payable-processes/
- https://beacon.acumatica.com/r/Form-Reference-Guide/Construction-Forms/Compliance-Preferences?contentId=WMnmtHk3exkQX4vs2CnaQg
- https://help.trimble.com/doc/vista/vista/accounting/accounts-payable/payments/checks/about-two-party-ap-checks

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Published by ProcIndex, which builds AI accounting agents for construction and manufacturing finance teams. ProcIndex currently connects to NetSuite, Sage Intacct, and QuickBooks. Worked examples in this guide are illustrative, not customer results.