The Vendor Lien Waiver And Release is a fundamental document in Canadian construction law, used to manage risk and ensure proper payment flow in construction projects. It is typically required when progress or final payments are made to contractors, subcontractors, or suppliers, providing assurance that no liens will be filed against the property for work completed up to a specified date or payment amount. The document must comply with provincial legislation, such as the Construction Act in Ontario or similar acts in other provinces, and often accompanies payment applications or statutory declarations. It serves multiple purposes: protecting property owners from double payment, enabling proper funds release from lenders, and maintaining clear title to the property. The waiver can be conditional (effective upon payment) or unconditional (effective immediately upon signing), and may be either partial (covering specific payment) or final (covering all work completed).
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1. Parties: Identification of the party providing the lien waiver (vendor/contractor) and the party receiving it (owner/general contractor)
2. Project Information: Details of the construction project including address, project name, and contract reference
3. Definitions: Key terms used in the document including 'Lien Rights', 'Work', 'Payment Amount', and other relevant terms
4. Payment Acknowledgment: Confirmation of the amount received and details of the payment being acknowledged
5. Waiver and Release: Express waiver of lien rights and release of claims up to the date/amount specified
6. Scope of Release: Clear delineation of what claims and rights are being waived and released
7. Representations and Warranties: Vendor's confirmation of authority to execute the waiver and that no liens have been filed
8. Execution: Formal signing section including date and authorized signature blocks
1. Conditional Release Provisions: Used when the release is conditional upon receipt of payment, specifying the conditions that must be met
2. Subcontractor Confirmation: Added when confirmation of payment to subcontractors and suppliers is required
3. Holdback Provisions: Included when addressing statutory holdback requirements and releases
4. Exceptions and Reservations: Used when certain claims or rights are specifically reserved or excluded from the waiver
5. Indemnification: Added when additional protection against future claims is required
6. Governing Law: Included when the project spans multiple jurisdictions or when specific provincial law needs to be specified
7. Notarization Block: Added when notarization of the document is required by local law or project requirements
1. Schedule A - Payment Details: Detailed breakdown of payment amounts, including current payment and previous payments
2. Schedule B - Project Description: Detailed description of the project and work performed
3. Schedule C - Subcontractor List: List of subcontractors and suppliers covered by the waiver
4. Appendix 1 - Supporting Documentation: Copies of relevant invoices, payment certificates, or other supporting documents
5. Appendix 2 - Statutory Declaration: Standard form statutory declaration confirming payment to subcontractors and suppliers
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Relevant Teams
Legal
Construction
Project Management
Finance
Procurement
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Relevant Roles
Project Manager
Construction Manager
Contract Administrator
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Financial Controller
Chief Financial Officer
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Construction Supervisor
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