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Conditional Waiver And Release On Final Payment for Canada

Conditional Waiver And Release On Final Payment Template for Canada

This document is a legally binding instrument used across Canadian provinces and territories that provides a conditional release of liens and claims upon receipt of final payment in construction projects. It serves as a crucial mechanism for project closure, offering protection to both paying and receiving parties by ensuring that all payment obligations are satisfied before liens and claims are released. The document complies with various provincial construction and builders' lien acts, incorporating specific requirements for different jurisdictions while maintaining its primary function of facilitating clean project completion and final payment processing.

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What is a Conditional Waiver And Release On Final Payment?

The Conditional Waiver And Release On Final Payment is a essential document used in Canadian construction projects when parties are preparing to close out a project and process final payment. It provides security to project owners and general contractors by ensuring that upon receipt of final payment, all liens and claims related to the work will be released, while protecting contractors and suppliers by making the release conditional upon actual receipt and clearance of payment. This document is particularly important in the context of provincial lien legislation, such as Ontario's Construction Act or Alberta's Builders' Lien Act, which govern the rights and obligations of construction project participants. It typically includes detailed information about the project, payment amount, and specific rights being released, and is commonly used in conjunction with final payment applications and statutory declarations.

What sections should be included in a Conditional Waiver And Release On Final Payment?

1. Parties: Identifies all relevant parties including the releasing party (typically contractor/subcontractor/supplier) and the party receiving the release (typically owner/general contractor)

2. Background: Brief description of the project, original contract, and context for the final payment and release

3. Definitions: Key terms used in the document including 'Final Payment', 'Project', 'Contract', and 'Lien Rights'

4. Final Payment Amount: Specific details of the final payment amount being made, including any retained amounts or holdbacks being released

5. Condition Precedent: Clear statement that the release is conditional upon receipt and clearance of the final payment

6. Scope of Release: Detailed description of the rights, claims, and liens being waived upon satisfaction of the condition precedent

7. Exceptions and Reservations: Any specific claims or rights explicitly excluded from the release

8. Representations and Warranties: Statements confirming authority to execute the release and that all subcontractors and suppliers have been or will be paid

9. Execution: Signature blocks and execution requirements

What sections are optional to include in a Conditional Waiver And Release On Final Payment?

1. Multiple Project References: Required when the release covers work on multiple properties or under multiple contracts

2. Subcontractor Confirmation: Additional section listing all subcontractors and suppliers and confirming their payment status, used for larger projects

3. Trust Fund Provisions: Required in jurisdictions with specific trust fund requirements for construction payments

4. Holdback Release: Specific section addressing statutory holdback release when applicable under provincial lien legislation

5. Surviving Claims: Detailed section needed when certain claims or rights are specifically preserved

What schedules should be included in a Conditional Waiver And Release On Final Payment?

1. Schedule A - Project Details: Detailed description of the project scope and location, particularly important for complex projects or multiple locations

2. Schedule B - Payment Details: Breakdown of the final payment amount, including any adjustments, change orders, or retained amounts

3. Schedule C - Subcontractor List: List of all subcontractors and suppliers who have provided work or materials, with their payment status

4. Appendix 1 - Supporting Documents: Copies of relevant documents such as the final invoice, payment certification, or statutory declarations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Release of Lien

Cost

Free to use
Relevant legal definitions






























Clauses




















Relevant Industries

Construction

Real Estate

Infrastructure

Commercial Development

Residential Development

Industrial Construction

Energy

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Healthcare Construction

Educational Facilities

Retail Development

Municipal Development

Relevant Teams

Legal

Finance

Construction Operations

Project Management

Procurement

Risk Management

Accounts Payable

Contract Administration

Claims Management

Document Control

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Chief Financial Officer

Accounts Payable Manager

Project Director

Site Superintendent

Procurement Manager

Risk Manager

Claims Manager

Construction Lawyer

Financial Controller

Operations Director

Industries






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