Conditional Final Lien Waiver

Conditional Final Lien Waiver Template for Philippines

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Key Requirements PROMPT example:

"I need a Conditional Final Lien Waiver for our Manila commercial building project, where I'm the general contractor expecting final payment of 5,000,000 PHP from ABC Development Corporation in March 2025, and I need to ensure the waiver covers all our subcontractors and suppliers."

Document background

The Conditional Final Lien Waiver is a critical document in Philippine construction projects that serves as a final settlement instrument between property owners and contractors. It is typically used at the project's completion stage when final payment is due but has not yet been received. The document indicates that upon receipt of the specified final payment, the contractor waives all rights to place a lien on the property for the work performed. Under Philippine law, particularly the Civil Code and CIAP regulations, this type of waiver must clearly state the conditions for effectiveness and include specific information about the project, parties involved, and payment details. The conditional nature of the waiver provides protection for contractors by ensuring they retain their lien rights until actual receipt of payment, while also giving property owners assurance that they will receive a full waiver of liens upon making the final payment.

Suggested Sections

1. Project Information: Identifies the construction project, including project name, address, and owner's details

2. Parties: Identifies the Waiving Party (contractor/subcontractor/supplier) and the Party Receiving Waiver (usually the property owner or general contractor)

3. Definitions: Defines key terms used in the waiver including 'Final Payment', 'Lien Rights', 'Project', and 'Contract'

4. Amount of Final Payment: Specifies the exact amount of final payment that triggers the waiver

5. Waiver Statement: Core section containing the conditional waiver language, specifically stating that the waiver takes effect only upon receipt of final payment

6. Scope of Waiver: Details what rights are being waived, including liens, claims, and demands related to the project

7. Exceptions and Reservations: Lists any rights or claims that are specifically not being waived

8. Representations and Warranties: Statements by the waiving party about their authority to execute the waiver and the absence of other liens or assignments

9. Execution Requirements: Requirements for signing and notarizing the waiver

Optional Sections

1. Prior Rights Reservation: Section preserving rights from previous work or separate contracts, used when the waiving party has multiple contracts on the same project

2. Subcontractor Confirmation: Section confirming all subcontractors and suppliers have been paid, used when the waiving party is a general contractor

3. Disputed Claims: Section addressing any pending or disputed claims, used when there are unresolved issues

4. Payment Application Reference: Reference to specific payment applications or invoices, used when tracking multiple payment phases

5. Conditional Release of Bond Rights: Section addressing release of bond rights, used when payment or performance bonds are involved

Suggested Schedules

1. Schedule A - Project Details: Detailed description of the project scope and location

2. Schedule B - Payment Details: Breakdown of the final payment amount and any previous payments

3. Schedule C - Subcontractor List: List of all subcontractors and suppliers covered by the waiver

4. Appendix 1 - Original Contract: Copy or reference to the original contract related to the work

5. Appendix 2 - Payment History: Record of all payments made under the contract to date

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

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Construction

Real Estate

Infrastructure Development

Commercial Property

Residential Development

Industrial Construction

Mining

Energy

Manufacturing

Hospitality

Relevant Teams

Legal

Construction

Project Management

Finance

Operations

Procurement

Risk Management

Commercial

Contract Administration

Real Estate

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Chief Financial Officer

Project Director

Construction Site Supervisor

Procurement Manager

Real Estate Developer

Property Manager

Claims Manager

Risk Manager

Commercial Director

Operations Manager

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