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Final Lien Release Form Template for Canada

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Key Requirements PROMPT example:

Final Lien Release Form

"I need a Final Lien Release Form for a commercial construction project in Ontario, where our company acted as the general contractor for a shopping mall development, with final payment of $2.5M to be received by March 15, 2025."

What is a Final Lien Release Form?

The Final Lien Release Form is a crucial document in Canadian construction law that provides formal confirmation that a contractor, subcontractor, or supplier has received full payment for their work or materials and consequently releases their right to file a construction lien against the property. This document is typically executed at the completion of a construction project or when final payment is made to a specific contractor. The form must comply with provincial legislation, as each Canadian province has its own construction lien or builder's lien act that governs the requirements for valid lien releases. The Final Lien Release Form should clearly identify the project, parties involved, amount paid, and include specific statutory language required by the applicable provincial law. It serves as protection for property owners and general contractors against future lien claims while providing evidence of payment completion for contractors and suppliers.

What sections should be included in a Final Lien Release Form?

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

2. Party Information: Identification of the releasing party (typically contractor/subcontractor/supplier) and the party receiving the release (typically owner/contractor)

3. Payment Acknowledgment: Confirmation of receipt of specific payment amount and details of the payment being acknowledged

4. Release Statement: Clear and unambiguous language releasing all lien rights related to the project

5. Scope of Release: Specific description of work, materials, or services covered by the release

6. Execution Block: Signature block including date, witness requirements, and notarization section if required

What sections are optional to include in a Final Lien Release Form?

1. Conditional Release Language: Used when the release is conditional upon receipt of payment, rather than acknowledging payment already received

2. Exceptions and Reservations: Used when certain claims or rights are specifically excluded from the release

3. Progress Payment Details: Used for releases related to progress payments rather than final payment, specifying the payment period covered

4. Statutory Declaration: Used when required by provincial law or contract, declaring all subcontractors and suppliers have been paid

5. Warranty Preservation: Used to explicitly preserve warranty obligations despite the release of lien rights

What schedules should be included in a Final Lien Release Form?

1. Schedule A - Project Details: Detailed description of the project scope and location, used for complex projects with multiple phases or locations

2. Schedule B - Payment History: Summary of all payments received to date, including the final payment that triggers the release

3. Schedule C - Subcontractor List: List of all subcontractors and suppliers who have provided releases, if required

4. Appendix 1 - Supporting Documentation: Copies of any required supporting documents such as previous progress releases 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

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Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Development

Industrial Development

Mining

Oil and Gas

Renewable Energy

Public Works

Healthcare Construction

Educational Facilities

Retail Development

Relevant Teams

Legal

Finance

Construction Management

Project Management

Procurement

Risk Management

Operations

Contract Administration

Real Estate Development

Document Control

Relevant Roles

Construction Project Manager

Contract Administrator

Legal Counsel

Chief Financial Officer

Construction Manager

Project Coordinator

Procurement Manager

Site Superintendent

Claims Manager

Risk Manager

Development Manager

Property Manager

Construction Accountant

Document Control Specialist

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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