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Construction Lien Release for the United States

Construction Lien Release Template for United States

A Construction Lien Release is a legal document used in the United States construction industry to waive or release a contractor's right to file a mechanics' lien against a property. The document serves as acknowledgment that payment has been received for work performed or materials supplied. The specific requirements and format vary by state, but generally must comply with state mechanics' lien laws and local construction regulations.

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What is a Construction Lien Release?

Construction Lien Releases are essential documents in the U.S. construction industry, used when contractors, subcontractors, or suppliers have received payment for their work or materials and agree to waive their right to file a mechanics' lien. These releases can be partial (covering specific payment periods) or final (covering all work on a project). Each state has specific requirements for lien releases, including format, content, and execution requirements. The document protects property owners while ensuring proper payment flow through the construction chain.

What sections should be included in a Construction Lien Release?

1. Project Identification: Details of the construction project including address and description

2. Party Information: Identification of lienor and property owner

3. Release Statement: Formal statement of lien release

4. Payment Information: Amount received and payment details

5. Release Date: Effective date of the release

6. Signature Block: Execution section including notarization

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

1. Conditional Release Language: Additional language used when release is contingent upon payment - typically included for releases given before payment is received

2. Warranty Statement: Optional warranties regarding work completed - included when required by contract or owner

3. Reservation of Rights: Statement preserving rights for unbilled work - typically included for partial releases

What schedules should be included in a Construction Lien Release?

1. Payment Schedule: Detailed breakdown of payments received

2. Work Description Schedule: Detailed description of work covered by the release

3. Supporting Documents Schedule: Copies of relevant invoices or payment confirmations

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

United States

Publisher

Ƶ

Document Type

Release of Lien

Cost

Free to use
Clauses




















Industries

State-Specific Mechanics' Lien Laws: Each state has its own mechanics' lien statutes with specific requirements, deadlines, and mandatory form requirements that must be followed for lien releases

Federal Construction Laws: Including the Miller Act for federal projects and Little Miller Acts (state equivalents) which govern payment bonds and protections for contractors

Uniform Commercial Code: Particularly Article 9 regarding secured transactions and provisions affecting construction payments and security interests

State Contract Laws: Basic contract formation requirements, consideration requirements, and enforceability provisions that apply to all contracts in the state

Construction Industry Regulations: State contractor licensing requirements, building codes, and local permit requirements that affect construction projects

Labor Laws: Fair Labor Standards Act, state labor laws, and prevailing wage requirements that affect construction projects and payments

Property Laws: Real property statutes, recording requirements, and priority rules that govern how liens attach to and are released from property

Release Type Considerations: Specifications regarding partial vs. final release, conditional vs. unconditional release, through-date for release, and payment amount covered

Documentation Requirements: Requirements for project identification, proper party identification, and notarization requirements for the lien release

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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