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Material Lien Waiver

Material Lien Waiver Template for Australia

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Key Requirements PROMPT example:

Material Lien Waiver

"I need a Material Lien Waiver for my construction supply company based in Queensland, which will waive rights to claim against $250,000 worth of steel materials delivered in March 2025, conditional upon receiving the payment."

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Document background
The Material Lien Waiver is a fundamental document in Australian construction and development projects, used to manage payment risks and ensure clear title to property. It becomes relevant when materials have been supplied to a construction project and payment has been made or is pending. The document serves as evidence that the supplier has received payment (or will receive payment) and consequently waives their right to place a lien on the property for the specified materials. The Material Lien Waiver must comply with relevant state-specific security of payment legislation and can be either conditional (pending payment) or unconditional (after payment received). It typically includes details of the materials supplied, project information, payment amounts, and specific rights being waived. This document is crucial for maintaining smooth payment processes and protecting all parties involved in construction projects across Australian jurisdictions.
Suggested Sections

1. Parties: Identification of the party providing the waiver (typically material supplier or subcontractor) and the party receiving the waiver (typically the contractor or owner)

2. Background: Brief context about the construction project, supply agreement, and the circumstances leading to the lien waiver

3. Definitions: Key terms used in the waiver including 'Materials', 'Project', 'Contract Price', 'Payment Period', and other relevant terms

4. Waiver Details: Specific details of the materials supplied, including dates, quantities, and values

5. Payment Acknowledgment: Confirmation of payments received and amounts being waived

6. Waiver Declaration: Express waiver of lien rights and claims relating to the specified materials and payment period

7. Representations and Warranties: Statements confirming authority to provide the waiver and that no assignment of rights has occurred

8. Governing Law: Specification of applicable Australian state law and jurisdiction

9. Execution: Signature blocks and execution requirements

Optional Sections

1. Conditional Waiver Provisions: Used when the waiver is conditional upon receipt of payment or other conditions

2. Reservation of Rights: Include when certain rights need to be preserved, such as retention rights or claims for variations

3. Third Party Rights: Required when there are other parties whose rights might be affected by the waiver

4. Indemnification: Optional protection against future claims, used in higher-risk situations

5. Statutory Declarations: Include when required by state-specific legislation or project requirements

Suggested Schedules

1. Schedule A - Material Details: Detailed list of materials supplied, including specifications, quantities, and values

2. Schedule B - Payment History: Record of all payments received and outstanding amounts

3. Schedule C - Project Details: Specific details of the construction project, including location and relevant permits

4. Appendix 1 - Supporting Documents: Copies of relevant delivery dockets, invoices, or other supporting documentation

5. Appendix 2 - Statutory Forms: Any required state-specific statutory forms or declarations

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Construction

Real Estate Development

Infrastructure

Mining

Commercial Property

Residential Development

Industrial Construction

Manufacturing

Engineering

Government Construction

Relevant Teams

Legal

Procurement

Finance

Construction

Project Management

Risk Management

Commercial

Accounts Payable

Contract Administration

Supply Chain

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Procurement Manager

Legal Counsel

Financial Controller

Site Supervisor

Commercial Manager

Claims Manager

Risk Manager

Development Manager

Quantity Surveyor

Supply Chain Manager

Accounts Payable Manager

Construction Lawyer

Industries
Building and Construction Industry Security of Payment Act: This legislation (with state variations) provides the framework for ensuring construction industry participants get paid for their work, including provisions about payment claims, payment schedules, and the right to place liens.
Personal Property Securities Act 2009 (Cth): Federal legislation governing security interests in personal property, including construction materials and equipment. Relevant for understanding how liens and security interests are registered and enforced.
Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010): Contains provisions about unfair contract terms and consumer guarantees that might affect the enforceability of waiver terms, particularly in cases involving residential construction.
State-specific Building and Construction Industry Payment Acts: Each state has its own version of security of payment legislation with specific requirements for payment claims, timing, and enforcement of liens (e.g., Building and Construction Industry Security of Payment Act 1999 NSW).
Contractors Debts Act 1997: Specific legislation (varying by state) that allows subcontractors to recover money owed to them by principal contractors, relevant when considering lien waivers.
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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