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Subcontractor Lien Release Form Template for England and Wales

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Key Requirements PROMPT example:

Subcontractor Lien Release Form

"I need a Subcontractor Lien Release Form for a commercial construction project in Manchester, where our subcontractor has completed £250,000 worth of electrical works and we need to process their final payment in March 2025."

Document background
The Subcontractor Lien Release Form is a critical document in construction projects governed by English and Welsh law, typically used when payments are made to subcontractors for completed work. While the UK construction industry operates differently from jurisdictions with formal lien systems, this document serves as an important tool for managing payment-related risks and maintaining clear records of payments and releases. It is commonly required before progress payments or final payments are released, and helps prevent future disputes by documenting that the subcontractor has received payment and waives any claims up to the specified amount or date.
Suggested Sections

1. Project Identification: Details of the specific construction project including address and contract references

2. Party Details: Information about the subcontractor and the party receiving the release

3. Payment Details: Specific amount being paid and payment reference details

4. Release Statement: Clear waiver language releasing claims up to the specified date

5. Execution Block: Signature sections for all relevant parties

Optional Sections

1. Conditional Release Clause: Additional clause to be included when the release is contingent upon receipt of payment

2. Reservation of Rights: Section preserving specific claims or rights not included in the release

3. Progress Payment Details: Section for releases related to progress payments rather than final payment

Suggested Schedules

1. Payment Schedule: Detailed breakdown of payments and amounts being released

2. Previous Payments Schedule: List of all previous payments received under the contract

3. Outstanding Claims Schedule: List of any preserved claims or outstanding matters not covered by the release

Authors

Alex Denne

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

Relevant legal definitions























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Construction Act 1996: Housing Grants, Construction and Regeneration Act - Primary legislation governing construction contracts and payment mechanisms in the UK

Scheme for Construction Contracts Regulations 1998: Regulations that provide a fallback framework for construction contracts in England and Wales that don't meet the requirements of the Construction Act

Construction (Design and Management) Regulations 2015: Regulations governing health, safety and welfare in construction projects, which may impact contractual relationships and responsibilities

Late Payment of Commercial Debts Act 1998: Legislation providing for interest on late payments in commercial transactions, relevant for payment provisions in lien releases

Contract Law Principles: Common law principles governing formation and enforcement of contracts, including consideration, intention to create legal relations, and capacity

Equitable Rights Principles: Legal principles concerning fairness and equity in contractual relationships, particularly relevant for releases and waivers

Waiver and Release Common Law: Common law principles specifically governing the waiver and release of rights, including requirements for valid waivers

Retention of Title: UK alternative to US-style liens, allowing suppliers to retain ownership of goods until payment is received

Construction Act Payment Provisions: Specific requirements for payment terms and mechanisms in construction contracts under UK law

Adjudication Rights: Statutory right to refer disputes to adjudication under the Construction Act, which must be preserved in release documents

Trust Arrangements: Legal framework for holding payments in trust, an alternative mechanism to liens for protecting payments in construction projects

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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