The Waiver and Release of Lien is a fundamental document in Canadian construction law, used when a party who has provided labor, materials, or services to a construction project receives payment and agrees to waive their lien rights. This document is essential for maintaining smooth payment flows in construction projects and ensuring clear property titles. The need for such waivers arises from provincial construction lien legislation, which gives contractors, subcontractors, and suppliers the right to place a lien on property if they aren't paid for their work. The document typically includes project details, payment information, and specific language required by provincial law. It can be either conditional (pending payment) or unconditional (after payment received), and may be either partial (for progress payments) or final (for project completion). The Waiver and Release of Lien must comply with specific provincial requirements, such as those outlined in Ontario's Construction Act or similar legislation in other provinces.
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1. Parties: Identification of the Lien Claimant (contractor, subcontractor, or supplier) and the Party receiving the release (usually the owner or general contractor)
2. Project Information: Details of the construction project including project name, address, and legal description of the property
3. Definitions: Key terms used in the document including 'Lien Rights', 'Contract', 'Project', and 'Work Performed'
4. Payment Acknowledgment: Confirmation of the amount received or to be received, including specific payment details
5. Release Statement: The core waiver language releasing all lien rights up to a specific date or payment amount
6. Warranty of Authority: Statement confirming the signing party's authority to execute the release
7. Governing Law: Specification that the document is governed by relevant provincial construction lien legislation
8. Execution: Signature blocks, date, and notary section if required
1. Conditional Release Provisions: Used when the release is conditional upon receipt of payment, specifying the conditions that must be met
2. Retention Release: Include when the release covers retained amounts being released
3. Exceptions and Reservations: Used to preserve certain rights or claims not intended to be waived
4. Previous Payment Certification: Include when confirming all previous payments have been received
5. Indemnification: Optional clause protecting against third-party claims
6. Lower-Tier Releases: Include when requiring confirmation that all subcontractors and suppliers have been paid
7. Sworn Statement: Used when an sworn affidavit format is required by the jurisdiction
1. Schedule A - Property Description: Detailed legal description of the property if too lengthy for main document
2. Schedule B - Payment Details: Breakdown of payment amounts, including current payment and previous payments
3. Schedule C - Subcontractor List: List of all subcontractors and suppliers covered by the release
4. Appendix 1 - Supporting Documents: Copies of relevant invoices, payment applications, or other supporting documentation
5. Appendix 2 - Statutory Forms: Any jurisdiction-specific statutory forms required for lien releases
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Relevant Teams
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Finance
Construction Management
Project Management
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Contract Administration
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Project Manager
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