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.
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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."
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
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
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
Relevant legal definitions
Clauses
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
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