Subcontractor Lien Release Form

Subcontractor Lien Release Form Template for India

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Key Requirements PROMPT example:

"I need a Subcontractor Lien Release Form for a partial payment of ₹50 lakhs for electrical work completed on a commercial building project in Mumbai, with the release conditional upon receipt of payment scheduled for March 15, 2025."

Document background

The Subcontractor Lien Release Form is a crucial document in Indian construction projects that protects all parties involved in the construction process. It is typically used when a subcontractor receives full or partial payment for their work and needs to formally relinquish their right to file a lien against the property. This document is particularly important in the Indian context where construction liens are governed by both federal legislation (such as the Indian Contract Act, 1872) and state-specific regulations. The form should be used at various payment milestones throughout the project, including progress payments and final payment, and must include specific details about the project, payment amount, and scope of work covered by the release. It serves as evidence of payment received and protection against future claims, making it an essential tool for risk management in construction projects.

Suggested Sections

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

2. Party Information: Complete identification of the subcontractor releasing the lien, the general contractor, and the property owner

3. Payment Acknowledgment: Specification of the payment amount received or to be received, including any previous payments if relevant

4. Lien Release Statement: Clear and unambiguous statement releasing rights to file any liens or claims up to the specified payment amount

5. Scope of Release: Specific description of what work, materials, or services the release covers and the time period involved

6. Warranty of Authority: Statement confirming the signing party's authority to execute the release

7. Execution Block: Signature lines, notary section, and date of execution

Optional Sections

1. Conditional Release Terms: Used when the release is contingent upon receipt of payment, specifying the conditions that must be met

2. Retention Rights Reservation: Include when retaining rights to claim retention amounts not yet due

3. Progress Payment Details: For partial releases, includes specific details about the current progress payment and remaining contract balance

4. Exceptions and Reservations: List of any specific claims or rights being reserved or excluded from the release

5. Previous Payment History: Include when there's a need to document the history of payments received to date

6. Waiver of Subrogation: Optional waiver of rights to step into the shoes of other parties to make claims

Suggested Schedules

1. Schedule A - Payment Details: Detailed breakdown of payments received and/or due, including dates and amounts

2. Schedule B - Work Description: Detailed description of work completed and materials supplied that are covered by the release

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

4. Appendix 2 - Project Milestone Certificate: If applicable, certification of completed project milestones related to the release

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Property

Industrial Development

Engineering

Architecture

Interior Design

Building Materials Manufacturing

Relevant Teams

Legal

Finance

Operations

Procurement

Construction

Project Management

Risk Management

Compliance

Accounts Payable

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Site Supervisor

Procurement Manager

Finance Manager

Accounts Payable Manager

Construction Director

Operations Manager

Compliance Officer

Risk Manager

General Counsel

Chief Financial Officer

Property Manager

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Lien Waiver For Construction Work

An Indian law-compliant document waiving construction lien rights upon payment receipt, used to protect property owners and acknowledge contractor payments in construction projects.

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Let's create your Subcontractor Lien Release Form

Authors

Alex Denne

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