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Construction Lien Release

Construction Lien Release Template for India

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Key Requirements PROMPT example:

Construction Lien Release

"I need a Construction Lien Release for a completed residential complex project in Mumbai, with final payment of ₹2.5 crore made on March 15, 2025, releasing all claims and liens against the property owner."

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Document background
A Construction Lien Release is a critical document in Indian construction projects that protects both property owners and contractors by formally documenting the release of lien rights. This document becomes necessary when payments are made during or after construction work, ensuring that contractors, subcontractors, or suppliers cannot later claim unpaid amounts through property liens. The document must comply with the Indian Contract Act, 1872, and relevant state-specific construction laws. It can be either conditional (pending payment) or unconditional (after payment receipt), and may be partial (for specific work phases) or final (for project completion). The Construction Lien Release typically includes details of the project, payment amount, scope of work covered, and specific rights being released.
Suggested Sections

1. Project Identification: Details of the construction project including project name, address, and any relevant contract numbers

2. Parties Information: Complete identification of the releasing party (contractor/subcontractor/supplier) and the party receiving the release (owner/contractor)

3. Payment Acknowledgment: Specific amount received and date of receipt, forming the basis for the release

4. Release Statement: Clear and unambiguous statement releasing liens, claims, and rights up to a specified date or amount

5. Execution Block: Date, signature lines, and notary section for formal execution of the release

Optional Sections

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

2. Reservation of Rights: Include when certain rights or claims are being specifically reserved or excluded from the release

3. Progress Payment Details: Required for partial releases to specify which portion of work or payment period is being released

4. Warranty of Authority: Added when signing authority needs to be explicitly stated, especially for corporate entities

Suggested Schedules

1. Payment History Schedule: Detailed breakdown of payments received to date (particularly important for partial releases)

2. Project Scope Schedule: Description of work completed that is covered by the release (used in complex projects)

3. Supporting Documents: List of attached supporting documents such as payment proofs or completion certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 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 Property

Industrial Construction

Public Works

Healthcare Construction

Educational Facilities

Hospitality Construction

Relevant Teams

Legal

Finance

Operations

Procurement

Project Management

Risk Management

Commercial Operations

Contract Administration

Construction Management

Real Estate

Relevant Roles

Construction Project Manager

Contract Administrator

Legal Counsel

Property Developer

Construction Site Supervisor

Procurement Manager

Finance Manager

Real Estate Manager

Operations Director

Company Secretary

Risk Manager

Commercial Manager

Chief Financial Officer

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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