Contractor Lien Release Form

Contractor Lien Release Form Template for Canada

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Key Requirements PROMPT example:

"I need a Contractor Lien Release Form for a partial payment of CAD 250,000 for our Ontario commercial building project, with conditional release terms pending payment clearance by March 15, 2025."

Document background

The Contractor Lien Release Form is an essential document in Canadian construction projects, used when contractors or subcontractors receive payment for completed work. This document serves as formal confirmation that the contractor has received payment and subsequently releases their right to file a construction lien against the property. The form is typically required at various stages of a construction project, including progress payments and final payment, and must comply with specific provincial legislation such as the Construction Act (Ontario) or equivalent acts in other provinces. The release may be conditional (pending payment) or unconditional (after payment receipt), and can be either partial (for specific work periods) or final (for all work completed). The Contractor Lien Release Form provides crucial protection for property owners while ensuring proper payment documentation for contractors.

Suggested Sections

1. Parties: Identification of the releasing party (contractor/subcontractor) and the party receiving the release (owner/general contractor), including full legal names and addresses

2. Project Information: Details of the construction project including project name, address, and any relevant project numbers or identifiers

3. Definitions: Key terms used in the release form including 'Lien Rights', 'Work', 'Contract', and 'Project'

4. Payment Acknowledgment: Confirmation of the amount received and details of the payment being acknowledged

5. Release Statement: The core release language waiving lien rights and claims up to the specified date or payment amount

6. Representation and Warranty: Contractor's confirmation that all subcontractors and suppliers have been paid

7. Execution: Signature blocks for all parties, including witness or notary requirements

Optional Sections

1. Conditional Release Terms: Used when the release is conditional upon receipt of payment, specifying the conditions that must be met

2. Reservation of Rights: Include when the contractor needs to preserve certain rights or claims, such as retention amounts or pending change orders

3. Progress Payment Details: For progress payment releases, include specific details about the work period covered

4. Sworn Statement: Include when a sworn statement is required by applicable law or contract

5. Indemnification: Additional protection for the owner/contractor against future claims, used in higher-risk situations

6. Previous Payments Schedule: Used in final releases to summarize all previous payments received

Suggested Schedules

1. Schedule A - Payment Details: Detailed breakdown of the payment amount, including original contract sum, change orders, and previous payments

2. Schedule B - Subcontractor List: List of all subcontractors and suppliers who have provided services or materials, with confirmation of their payment status

3. Schedule C - Project Scope: Detailed description of the work performed that is covered by the release

4. Appendix 1 - Supporting Documents: Copies of relevant documents such as payment certificates or invoices referenced in the release

5. Appendix 2 - Statutory Declaration: Standard form statutory declaration where required by provincial legislation

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

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

Healthcare Construction

Educational Facilities

Retail Development

Municipal Infrastructure

Relevant Teams

Legal

Construction Management

Project Management

Finance

Procurement

Risk Management

Contract Administration

Development

Operations

Accounts Payable

Relevant Roles

Construction Project Manager

Contract Administrator

Legal Counsel

Construction Manager

Property Developer

Site Superintendent

Procurement Manager

Claims Manager

Finance Director

Project Coordinator

Risk Manager

Construction Accountant

Development Manager

Contracts Manager

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Authors

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