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Construction Conditional Lien Waiver for the United Kingdom

Construction Conditional Lien Waiver Template for England and Wales

A Construction Conditional Lien Waiver under English and Welsh law is a document that conditionally waives certain rights to claim against property or payments, typically in exchange for progress payments or final payment. While the UK doesn't have a formal mechanics lien system like the US, this document serves to manage payment rights and obligations within the framework of the Construction Act 1996 and related legislation. The waiver becomes effective only when specified conditions, typically receipt of payment, are met.

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Construction Conditional Lien Waiver

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What is a Construction Conditional Lien Waiver?

The Construction Conditional Lien Waiver is a crucial document in construction projects across England and Wales, used to manage payment-related rights and obligations. While different from US-style mechanics liens, it operates within the framework of the Construction Act 1996 and related UK legislation. This document is typically used when making progress payments or final payments, providing conditional waiver of certain rights upon receipt of specified payments. The waiver helps maintain clear payment records and reduces payment disputes while protecting both parties' interests. Use of this document type has become standard practice in UK construction projects, particularly for larger commercial developments.

What sections should be included in a Construction Conditional Lien Waiver?

1. Parties: Identification of the contractor and the party receiving the waiver

2. Background: Project details and context of the waiver

3. Definitions: Key terms used in the document including references to Construction Act 1996 and relevant legislation

4. Project Information: Specific details of the construction project including location, scope, and contract reference

5. Payment Details: Information about the payment being made including amount and payment date

6. Waiver Conditions: Specific conditions that must be met for the waiver to be effective, including references to statutory rights

7. Execution: Signature blocks and execution provisions

What sections are optional to include in a Construction Conditional Lien Waiver?

1. Retained Rights: Description of rights retained by the contractor, particularly regarding statutory adjudication rights

2. Previous Payments: Details of prior payments made and their status

3. Disputed Claims: Treatment of disputed amounts and preservation of rights relating to disputed sums

What schedules should be included in a Construction Conditional Lien Waiver?

1. Schedule of Works: Detailed list of works covered by the waiver

2. Payment Schedule: Breakdown of payments and amounts, including any retention amounts

3. Supporting Documentation: Relevant certificates, notices, or other supporting documents required under Construction Act 1996

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

England and Wales

Publisher

Ƶ

Document Type

Release of Lien

Cost

Free to use
Relevant legal definitions





























Clauses




















Industries

Construction Act 1996: Housing Grants, Construction and Regeneration Act - Primary legislation governing construction contracts in England and Wales, including payment provisions and right to suspend work

Scheme for Construction Contracts Regulations 1998: Secondary legislation that provides default provisions for construction contracts that don't comply with the Construction Act requirements

Construction (Design and Management) Regulations 2015: Regulations governing health, safety and welfare in construction - relevant for determining responsibilities and duties of parties

Local Democracy, Economic Development and Construction Act 2009: Updated provisions to the Construction Act 1996, including amendments to payment provisions and adjudication procedures

UK Lien System Distinction: Unlike US jurisdiction, UK lacks formal mechanics lien system - relies instead on statutory rights to suspend work and adjudication

Pay-When-Paid Prohibition: Legal principle prohibiting conditional payment clauses ('pay-when-paid') in construction contracts under UK law

Melville Dundas Ltd v George Wimpey UK Ltd [2007]: Key case law (UKHL 18) addressing the relationship between insolvency and construction payment provisions

Grove Developments Ltd v S&T (UK) Ltd [2018]: Significant case law (EWCA Civ 2448) regarding payment notices and 'smash and grab' adjudications in construction contracts

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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