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Subcontractor Lien Waiver for Nigeria

Subcontractor Lien Waiver Template for Nigeria

A legal document used in the Nigerian construction industry where a subcontractor waives their right to place a lien on a property in exchange for payment for work performed. This document, governed by Nigerian federal and state construction laws, serves as a formal acknowledgment of payment receipt and releases the property owner and general contractor from future lien claims up to the amount stated. The document can be either conditional (pending payment) or unconditional (after payment received) and may cover partial or final payments for the subcontractor's scope of work.

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What is a Subcontractor Lien Waiver?

The Subcontractor Lien Waiver is a critical document in Nigerian construction projects that protects property owners and general contractors from double payment while ensuring subcontractors receive proper compensation for their work. This document is typically required before progress payments or final payments are released to subcontractors. Under Nigerian law, it serves as evidence that the subcontractor has received payment (or will receive payment in the case of conditional waivers) and waives their right to file a lien against the property for the amount specified. The document must comply with federal construction laws and state-specific requirements regarding lien rights and construction payments. It's particularly important in large-scale construction projects where multiple subcontractors are involved and clear documentation of payment and lien releases is essential for project closeout.

What sections should be included in a Subcontractor Lien Waiver?

1. Identification of Parties: Names and details of the subcontractor providing the waiver and the party receiving it (typically general contractor or property owner)

2. Project Information: Details of the construction project including location, project name, and contract reference numbers

3. Payment Acknowledgment: Specific amount received or to be received and payment details

4. Waiver and Release: Core waiver language releasing rights to file liens up to the stated payment amount

5. Warranty of Authority: Subcontractor's confirmation of authority to execute the waiver

6. Governing Law: Specification that Nigerian law governs the waiver

7. Signature Block: Execution section with date and notarization requirements

What sections are optional to include in a Subcontractor Lien Waiver?

1. Conditional Waiver Terms: Used when the waiver is conditional upon receipt of payment, specifying the conditions that must be met

2. Reservation of Rights: Include when retaining rights for unbilled or retention amounts, disputed claims, or pending change orders

3. Prior Rights Preservation: Used in partial waivers to preserve lien rights for previous work or payments

4. Representations and Warranties: Additional assurances about payment to lower-tier subcontractors, used in larger projects

5. Indemnification: Added protection for the receiving party against future claims, typically used in final waivers

What schedules should be included in a Subcontractor Lien Waiver?

1. Schedule A - Payment Details: Itemized breakdown of payment amounts, including current payment and previous payments

2. Schedule B - Project Scope: Detailed description of work covered by the waiver

3. Schedule C - Outstanding Claims: List of any preserved claims or disputed amounts not covered by the waiver

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

5. Appendix 2 - Authorization Evidence: Corporate resolutions or power of attorney demonstrating signing authority

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

Nigeria

Publisher

Ƶ

Document Type

Waiver

Cost

Free to use
Relevant legal definitions





























Clauses




















Relevant Industries

Construction

Real Estate Development

Infrastructure

Oil and Gas

Mining

Commercial Property

Industrial Development

Residential Development

Public Works

Energy

Relevant Teams

Legal

Construction

Commercial

Procurement

Finance

Project Management

Risk Management

Operations

Contract Administration

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Quantity Surveyor

Site Manager

Commercial Manager

Claims Manager

Procurement Manager

Finance Director

Project Director

Construction Lawyer

Risk 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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