Contractor Lien Release Form Template for United Arab Emirates

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Key Requirements PROMPT example:

Contractor Lien Release Form

"I need a conditional Contractor Lien Release Form for a Dubai commercial construction project, where our company will release liens upon receipt of the January 2025 progress payment of AED 2.5 million, but we want to maintain rights for retained amounts and pending variation claims."

Document background
The Contractor Lien Release Form is a critical document in UAE construction projects, used when a contractor has completed work and received payment, either partially or in full. This document is essential under UAE Federal Law No. 5 of 1985 (Civil Code) and various Emirates' local regulations to protect both property owners and contractors. The form serves to document that payment has been received and that the contractor releases their right to file a lien against the property for the work covered by the payment. It includes detailed information about the project, parties involved, payment received, and the specific rights being released. The document can be either conditional (pending payment) or unconditional (after payment receipt), and may be used for progress payments or final payment completion. It's particularly important in the UAE construction sector where strict documentation of payment and release of rights is required for legal compliance and project closure.
Suggested Sections

1. Parties: Identification of the Contractor (lien holder) and the Property Owner/General Contractor (party receiving the release), including full legal names and addresses

2. Project Information: Details of the construction project including project name, location, and contract reference numbers

3. Payment Acknowledgment: Confirmation of the amount received or to be received, including the payment date and method

4. Release Statement: Clear statement releasing all lien rights, claims, and demands against the property up to the specified date or payment amount

5. Warranty of Authority: Statement confirming the signing party's authority to execute the release

6. Governing Law: Specification that the release is governed by UAE law and relevant Emirates' regulations

7. Execution: Signature blocks for authorized representatives, including date and witness provisions

Optional Sections

1. Conditional Release Provisions: Used when the release is conditional upon receipt of payment, specifying the conditions that must be met

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

3. Subcontractor Acknowledgment: Required when the contractor confirms all subcontractors and suppliers have been paid

4. Exceptions and Reservations: Used when certain claims or rights are specifically excluded from the release

5. Progress Payment Details: Required for partial releases, specifying the period or work covered by the release

Suggested Schedules

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

2. Schedule B - Payment Summary: Breakdown of payments received, amounts released, and any retained amounts

3. Appendix 1 - Supporting Documents: Copies of relevant payment receipts, contract excerpts, or other supporting documentation

Authors

Alex Denne

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

Relevant Industries

Construction

Real Estate

Infrastructure Development

Commercial Property

Residential Development

Industrial Construction

Healthcare Facilities

Hospitality

Retail Development

Energy and Utilities

Relevant Teams

Legal

Finance

Construction

Project Management

Contract Administration

Commercial

Property Management

Risk Management

Procurement

Operations

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Finance Manager

Quantity Surveyor

Site Supervisor

Development Director

Commercial Manager

Claims Manager

Property Manager

Procurement Manager

Construction Director

Legal Director

Chief Financial Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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