The Preliminary Lien Release is a crucial document in construction projects that helps manage payment risks and protect all parties involved. It is commonly used when partial payments are made during ongoing construction work, allowing contractors to receive progress payments while providing property owners with security against future claims. Under English and Welsh law, this document serves as evidence that specific payments have been received and corresponding lien rights have been waived. The Preliminary Lien Release typically includes details of the work completed, payment amounts, and specific rights being released, while preserving rights for future work or unpaid amounts.
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1. Project Identification: Details of the construction project including address, reference numbers, and date
2. Party Information: Full legal names and addresses of contractor, property owner, and any other relevant parties
3. Payment Details: Amount received, payment reference, and date of payment
4. Work Description: Detailed description of work completed to date for which the lien is being released
5. Release Statement: Clear statement of rights being released and extent of the release
6. Execution Block: Signature blocks, witness requirements, and date of execution
1. Conditional Release Terms: Used when the release is subject to specific conditions being met, such as clearance of funds
2. Retention Details: When partial retention is maintained, specifying the amount and terms of retention
3. Third Party Rights: When rights of subcontractors, suppliers, or other third parties need to be addressed
4. Warranties and Representations: Additional warranties about payment status, work completion, or other relevant matters
1. Schedule 1 - Payment Schedule: Detailed breakdown of payments received and outstanding amounts
2. Schedule 2 - Work Completion Certificate: Evidence of work completion if relevant to the release
3. Schedule 3 - Supporting Documentation: Any relevant certificates, permits, approvals, or other supporting documents
4. Schedule 4 - Original Contract Details: Reference details of the original contract and any variations
Relevant legal definitions
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