The Construction Lien Release is a vital document in Hong Kong's construction industry, typically used after a contractor, subcontractor, or supplier receives payment for their work or materials. This document is essential for maintaining clear property titles and managing payment-related risks in construction projects. Under Hong Kong law, the release provides legal protection for property owners while ensuring contractors have a formal mechanism to acknowledge payment receipt. The Construction Lien Release should be executed when milestone or final payments are made, containing specific details about the project, payment amounts, and the scope of rights being released. It's particularly important in large-scale construction projects where multiple parties are involved and where clear documentation of payment and release of claims is crucial for project completion and final handover.
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1. Project Identification: Details of the construction project including address, contract reference numbers, and date of original contract
2. Parties: Identification of the releasing party (typically contractor/subcontractor) and the released party (typically owner/general contractor)
3. Payment Acknowledgment: Confirmation of the amount received and details of the payment that forms the basis of the release
4. Scope of Release: Specific description of what claims, liens, and rights are being released
5. Release Statement: Formal statement of release of liens and claims up to the specified date
6. Representations and Warranties: Statements confirming the releasing party's authority and that all subcontractors and suppliers have been paid
7. Execution: Signature blocks, notarization requirements, and date of execution
1. Conditional Release Provisions: Used when the release is conditional upon receipt of payment or other conditions
2. Reserved Rights: Section specifying any rights or claims that are specifically preserved and not released
3. Indemnification: Additional provisions where the releasing party agrees to indemnify the released party against future claims
4. Subcontractor Confirmation: Additional section required when confirmation of payment to subcontractors is necessary
5. Dispute Resolution: Include when parties want to specify mechanism for resolving any disputes about the release
1. Schedule A - Payment Details: Detailed breakdown of payments received and payment history
2. Schedule B - Project Scope: Detailed description of the work performed that is subject to the release
3. Schedule C - Subcontractor List: List of all subcontractors and suppliers involved in the project
4. Appendix 1 - Supporting Documents: Copies of relevant payment receipts, invoices, or other supporting documentation
5. Appendix 2 - Original Lien Documentation: Copies of original lien notices or claims being released
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