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Conditional Waiver And Release Of Lien Template for Saudi Arabia

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Key Requirements PROMPT example:

Conditional Waiver And Release Of Lien

"I need a Conditional Waiver and Release of Lien for a large-scale commercial construction project in Riyadh, where we're the general contractor receiving a progress payment of 5 million SAR, with specific provisions for retaining rights related to disputed change orders worth 800,000 SAR."

Document background
The Conditional Waiver And Release Of Lien is a crucial document in Saudi Arabian construction and development projects, designed to facilitate smooth payment processes while protecting the interests of all parties involved. This document is typically used when a contractor, subcontractor, or supplier is ready to receive payment for completed work or delivered materials, but wants to ensure the payment is received before releasing their lien rights. The document must comply with Saudi Arabia's legal framework, including Sharia law principles, the Commercial Courts Law, and the Saudi Construction Law. It includes specific details about the project, parties involved, payment amount, and the exact conditions under which the release becomes effective. The conditional nature of the release provides security for the releasing party while offering the property owner assurance that lien rights will be waived upon proper payment.
Suggested Sections

1. Parties: Identification of the releasing party (contractor/subcontractor/supplier) and the party receiving the release (owner/contractor)

2. Background: Details of the original contract, project description, and reference to any relevant agreements or purchase orders

3. Definitions: Key terms used in the document including 'Lien', 'Project', 'Contract Price', 'Payment Amount', and 'Effective Date'

4. Scope of Work: Description of the work, materials, or services provided under the original contract

5. Payment Details: Specification of the payment amount that triggers the release, including any previous payments received

6. Conditional Release: The core waiver language specifying that the release becomes effective only upon receipt of the specified payment

7. Representations and Warranties: Statements confirming the releasing party's authority to execute the release and that no assignment of rights has occurred

8. Retention of Rights: Specification of any rights retained by the releasing party, including rights related to retention amounts or disputed claims

9. Governing Law and Jurisdiction: Confirmation that Saudi law governs the document and specification of jurisdiction for disputes

10. Execution: Signature blocks and execution requirements in compliance with Saudi law

Optional Sections

1. Assignment Provisions: Required when there have been or may be assignments of rights or obligations

2. Retention Amount: Include when there are retained amounts not covered by the release

3. Disputed Claims: Required when there are outstanding disputed claims that are explicitly excluded from the release

4. Through-Date Provisions: Include when the release covers work through a specific date rather than the entire project

5. Subordination Language: Required when there are multiple lien holders and priority needs to be established

6. Additional Indemnifications: Include when specific indemnification provisions are required beyond the standard release

7. Notarization Requirements: Include when the document requires notarization or additional authentication under Saudi law

Suggested Schedules

1. Schedule A - Project Details: Detailed description of the project, including location, scope, and relevant contract numbers

2. Schedule B - Payment History: Itemized list of all payments received to date and pending payments

3. Schedule C - Outstanding Claims: List of any preserved or excluded claims not covered by the release

4. Schedule D - Supporting Documents: Copies of relevant invoices, payment applications, or other supporting documentation

5. Appendix 1 - Original Contract Extract: Relevant excerpts from the original contract relating to payments and liens

6. Appendix 2 - Authorization Documents: Corporate or other authorization documents proving authority to execute the release

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries

Construction

Real Estate Development

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Relevant Teams

Legal

Finance

Construction Management

Project Management

Contract Administration

Risk Management

Commercial Operations

Development

Procurement

Claims and Disputes

Document Control

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Chief Financial Officer

Finance Director

Project Director

Site Supervisor

Procurement Manager

Claims Manager

Risk Manager

Commercial Director

Development Director

Construction Lawyer

Quantity Surveyor

Project Controller

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