Arizona lien waivers: forms, rules and retainage.
What Arizona law requires of lien waivers and releases, the forms contractors and suppliers use, and how much retainage can be held, with the statute behind each point.
Checked against the Arizona statutes on 2026-11-13 · General information, not legal advice
In short
Arizona requires four statutory forms in A.R.S. 33-1008(D): conditional and unconditional, each for progress and final payment. A waiver that doesn't substantially follow the right form is unenforceable unless the claimant was paid in full, and no contract term can waive or impair someone else's lien rights. Conditional waivers take effect when the check clears. Every form includes a warranty that you have paid, or will promptly pay, your own subcontractors and suppliers.
The Arizona waiver forms set by statute.
The forms must be substantially followed, signed by the claimant or its agent and, for conditional forms, backed by evidence of payment. The progress forms exclude retention, pending modifications and work after the date stated. An accord and satisfaction or a court settlement that specifically references the lien or bond claims remains valid outside the forms (33-1008(C)).
| Form | Type | When it's used |
|---|---|---|
| Conditional Waiver and Release on Progress Payment | Conditional · Progress payment | With each progress billing; effective when the check is endorsed and paid. |
| Unconditional Waiver and Release on Progress Payment | Unconditional · Progress payment | After the progress payment is received. |
| Conditional Waiver and Release on Final Payment | Conditional · Final payment | With the final billing; effective when final payment clears. |
| Unconditional Waiver and Release on Final Payment | Unconditional · Final payment | After final payment, including retention, is received. |
What Arizona law requires.
Statutory forms only
A waiver statement is unenforceable unless it's a statutory waiver or the claimant was paid in full (33-1008(B)).
No impairing others' rights
An owner or contractor can't waive or impair other people's lien claims, and contract terms that try to are void (33-1008(A)).
The payment warranty
Each form includes the claimant's warranty that it has paid, or will promptly pay, its own subcontractors and suppliers from the money received. Signing it while a sub is unpaid creates its own exposure.
Conditional until it clears
A conditional waiver takes effect when the check is endorsed and paid by the bank; keep proof of the payment it relates to.
How much can be held back in Arizona.
| Private projects | A "reasonable amount" under A.R.S. 32-1182(D). A retention release billing is deemed approved 14 days after the owner receives it, then paid within 7 days; subcontractors are paid within 7 days of the contractor's receipt; late payments accrue 1.5% a month. |
|---|---|
| Public projects | 10% of each progress payment. At 50% complete, half the retention is paid on request and later payments are capped at 5%, reverting to 10% if progress is unsatisfactory (A.R.S. 34-221). Contractors may post substitute securities instead of cash retention. |
| Release | Public: within 60 days of completion, with 1% a month interest on late payments. |
Source: A.R.S. 32-1182, 32-1183 and 34-221 (official). Contracts can set lower retainage; read yours alongside the statute.
Collecting waivers without the paper chase.
On a busy job, a general contractor collects a conditional waiver from every subcontractor and supplier with each pay application, swaps it for an unconditional one once payment clears, and tracks retainage owed on every subcontract until final completion. Missing one waiver can hold up the owner's payment for everyone.
Agenbord Build for general contractors is designed to request, collect and match waivers to each payment and keep retainage per subcontract, so the next pay application isn't waiting on paperwork. It's in early access. See also our guides to construction pay applications and retainage.
Arizona lien waivers: common questions.
Does Arizona require specific lien waiver forms?
Yes. A.R.S. 33-1008(D) sets four forms, conditional and unconditional for progress and final payment. Other waivers are unenforceable unless the claimant was paid in full, with a narrow exception for an accord and satisfaction or court settlement that specifically references the lien claims.
How much retention can be held in Arizona?
On public projects, 10% until the project is 50% complete, when half is paid on request and later retention is capped at 5%. On private projects, the statute allows a reasonable amount.
Do Arizona lien waivers need to be notarized?
Neither the statute nor the statutory forms require notarization.
What warranty is in an Arizona lien waiver?
Each statutory form includes the claimant's warranty that it has already paid, or will promptly pay, its own subcontractors and suppliers from the money it received.
Sources
- A.R.S. 33-1008 - Waiver and release of lien (official)
- A.R.S. 32-1182 - Private construction payments and retention (official)
- A.R.S. 32-1183 - Subcontractor payments (official)
- A.R.S. 34-221 - Public works retention (official)
General information about Arizona law as checked on 2026-11-13, not legal advice. Lien law is technical and deadlines are strict; have a construction attorney review your forms and process.
