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Construction Lien Release for Hong Kong

Construction Lien Release Template for Hong Kong

A Construction Lien Release is a formal legal document used in Hong Kong's construction industry to release claims and liens against a property following payment for construction work, materials, or services. The document, governed by Hong Kong law and particularly relevant under the Buildings Ordinance (Cap. 123), provides legal assurance that the releasing party waives their right to place or maintain a lien on the property for work completed and paid for. It serves as crucial documentation in the construction payment process, protecting both property owners and contractors while ensuring clear title to the property.

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What is a Construction Lien Release?

The Construction Lien Release is a vital document in Hong Kong's construction industry, typically used after a contractor, subcontractor, or supplier receives payment for their work or materials. This document is essential for maintaining clear property titles and managing payment-related risks in construction projects. Under Hong Kong law, the release provides legal protection for property owners while ensuring contractors have a formal mechanism to acknowledge payment receipt. The Construction Lien Release should be executed when milestone or final payments are made, containing specific details about the project, payment amounts, and the scope of rights being released. It's particularly important in large-scale construction projects where multiple parties are involved and where clear documentation of payment and release of claims is crucial for project completion and final handover.

What sections should be included in a Construction Lien Release?

1. Project Identification: Details of the construction project including address, contract reference numbers, and date of original contract

2. Parties: Identification of the releasing party (typically contractor/subcontractor) and the released party (typically owner/general contractor)

3. Payment Acknowledgment: Confirmation of the amount received and details of the payment that forms the basis of the release

4. Scope of Release: Specific description of what claims, liens, and rights are being released

5. Release Statement: Formal statement of release of liens and claims up to the specified date

6. Representations and Warranties: Statements confirming the releasing party's authority and that all subcontractors and suppliers have been paid

7. Execution: Signature blocks, notarization requirements, and date of execution

What sections are optional to include in a Construction Lien Release?

1. Conditional Release Provisions: Used when the release is conditional upon receipt of payment or other conditions

2. Reserved Rights: Section specifying any rights or claims that are specifically preserved and not released

3. Indemnification: Additional provisions where the releasing party agrees to indemnify the released party against future claims

4. Subcontractor Confirmation: Additional section required when confirmation of payment to subcontractors is necessary

5. Dispute Resolution: Include when parties want to specify mechanism for resolving any disputes about the release

What schedules should be included in a Construction Lien Release?

1. Schedule A - Payment Details: Detailed breakdown of payments received and payment history

2. Schedule B - Project Scope: Detailed description of the work performed that is subject to the release

3. Schedule C - Subcontractor List: List of all subcontractors and suppliers involved in the project

4. Appendix 1 - Supporting Documents: Copies of relevant payment receipts, invoices, or other supporting documentation

5. Appendix 2 - Original Lien Documentation: Copies of original lien notices or claims being released

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

Hong Kong

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions


























Clauses



















Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Development

Industrial Construction

Civil Engineering

Building Materials

Architecture and Design

Property Management

Relevant Teams

Legal

Construction

Project Management

Finance

Commercial

Procurement

Risk Management

Contract Administration

Operations

Property Development

Relevant Roles

Construction Manager

Project Director

Contract Administrator

Legal Counsel

Property Developer

Site Manager

Quantity Surveyor

Claims Manager

Finance Director

Procurement Manager

Commercial Director

Risk Manager

Project Control 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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