This template conditional waiver and release upon progress payment may be used by a potential mechanic's lien claimant in Arizona to agree that it will waive and release lien rights when it receives a progress payment for work performed on a construction project. This template contains practical guidance and drafting notes. Arizona law provides for the use of lien waivers in connection with mechanic's lien rights. However, any waiver must substantially comply with the relevant example waivers set forth in Ariz. Rev. Stat § 33-1008. Waivers that do not substantially comply with the statutory forms prescribed by Ariz. Rev. Stat § 33-1008 are ineffective and do not release lien rights. This template tracks the statutory language. Progress payment waivers typically release lien rights through certain time periods, whereas final payment waivers typically release all lien rights on a project. In addition, conditional waivers are only operative if the payment detailed therein is made, whereas unconditional waivers are operative even if the referenced payment has not been made. The general rule in practice is that a conditional waiver plus payment is the equivalent of an unconditional waiver to the extent of payment. For a full listing of key content covering mechanic's liens, see Mechanic's Lien Resource Kit. For further guidance on mechanic's liens in Arizona see Mechanic's Liens (AZ) and Mechanic’s Lien Resource Kit (AZ). For general guidance on lien waiver see Partial and Final Lien Waivers.