A Conditional Final Lien Release is a crucial document in Singapore's construction industry that provides a formal mechanism for releasing payment security rights upon satisfaction of specified conditions, typically the receipt of final payment. Operating under Singapore's SOPA framework, this document protects both parties by ensuring that contractors maintain their security rights until payment is received while giving property owners assurance that no further claims will be made once payment is complete. The document is particularly important in large construction projects and typically includes details of the project, parties involved, payment amount, and specific conditions for the release to become effective.
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Key Requirements PROMPT example:
Conditional Final Lien Release
"Need a Conditional Final Lien Release for a Singapore commercial building project worth SGD 5.2M, with final payment scheduled for March 2025, to be signed between ABC Construction Pte Ltd (contractor) and SingaProp Developments (owner)."
1. Project Identification: Details of the construction project including address and project name
2. Parties Information: Identity of contractor/subcontractor and property owner
3. Payment Amount: Specific amount received or to be received
4. Scope of Release: Description of work or materials covered by the release
5. Conditional Terms: Specific conditions that must be met for the release to become effective
1. Reservation of Rights: Used when certain claims or rights need to be preserved - applicable when there are disputed claims or potential future claims
2. Progress Payment Details: Reference to specific progress payments - applicable when release relates to specific progress payment periods
3. Third Party Rights: Rights of other parties affected by the release - applicable when subcontractors or suppliers are involved
1. Payment Schedule: Detailed breakdown of payments made and outstanding
2. Work Completion Schedule: List of completed works covered by the release
3. Supporting Documents: Copies of relevant invoices, payment certificates, or other supporting documentation
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