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Contractor Lien Release

Contractor Lien Release Template for Canada

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Key Requirements PROMPT example:

Contractor Lien Release

"I need a Contractor Lien Release for an Ontario-based commercial construction project, where we're making a conditional progress payment of $450,000 to our general contractor for work completed up to March 15, 2025, with the standard 10% holdback."

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Document background
The Contractor Lien Release is a crucial document in Canadian construction projects that provides protection for both property owners and contractors. It is typically used when a contractor or subcontractor receives payment for completed work, whether as progress payments or final payment. The document ensures that once payment is received, the contractor cannot file a construction lien against the property for the work covered by the payment. This release mechanism is essential for maintaining smooth payment flow in construction projects and providing certainty to property owners about their liability. The specific requirements and format of the release vary by province, with each jurisdiction having its own construction lien legislation. The document may be conditional (pending payment) or unconditional (after payment received), and can be partial (for progress payments) or final (upon project completion).
Suggested Sections

1. Identification of Parties: Names and details of the Contractor (Lien Claimant) and the Party obtaining the release (typically the Owner or General Contractor)

2. Project Information: Details of the construction project including project name, address, and legal description of the property

3. Payment Reference: Details of the payment amount, invoice references, and payment period covered by the release

4. Release Statement: The formal statement releasing rights to file or maintain a construction lien, including the scope of the release

5. Certification: Contractor's certification that all subcontractors and suppliers have been or will be paid from the funds received

6. Execution: Signature blocks for authorized representatives, including notarization requirements

Optional Sections

1. Conditional Release Provisions: Used when the release is conditional upon receipt of payment, specifying the conditions that must be met for the release to take effect

2. Partial Release Provisions: Used for progress payments, specifying that the release only applies to a specific portion or period of work

3. Reservation of Rights: Used when certain claims or rights are specifically excluded from the release, such as retention amounts or disputed claims

4. Warranty of Authority: Added when there might be questions about the signing authority, confirming the signer's authority to execute the release

5. Previous Payments Acknowledgment: Used in final releases to acknowledge receipt of all previous payments and confirm no outstanding payment claims

Suggested Schedules

1. Schedule A - Project Details: Detailed description of the project scope, location, and relevant contract references

2. Schedule B - Payment Details: Breakdown of payment amounts, including current payment and any retained amounts

3. Schedule C - Subcontractor List: List of all subcontractors and suppliers covered by the release, if applicable

4. Appendix 1 - Supporting Documentation: Copies of relevant invoices, payment certificates, or other supporting documents

5. Appendix 2 - Statutory Declaration: Required in some jurisdictions, declaring all labor and material payments are current

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions






























Clauses




















Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Development

Industrial Construction

Mining

Oil and Gas

Public Works

Healthcare Construction

Relevant Teams

Legal

Finance

Procurement

Construction Management

Project Management

Risk Management

Accounts Payable

Contract Administration

Development

Operations

Relevant Roles

Construction Project Manager

Contract Administrator

Legal Counsel

Chief Financial Officer

Accounts Payable Manager

Construction Site Supervisor

Procurement Manager

Risk Manager

Claims Manager

Project Controller

Construction Lawyer

Property Manager

Development Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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