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Subcontractor Final Lien Waiver Form

Subcontractor Final Lien Waiver Form Template for South Africa

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Key Requirements PROMPT example:

Subcontractor Final Lien Waiver Form

"I need a Subcontractor Final Lien Waiver Form for a completed office building project in Cape Town, where final payment of R2.5 million has been received and we need to release all claims against the property owner and main contractor."

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Document background
The Subcontractor Final Lien Waiver Form is a crucial document in South African construction projects that provides closure to the contractual relationship between subcontractors and main contractors or property owners. While South Africa's legal system doesn't have statutory lien laws like some other jurisdictions, it recognizes builder's liens through common law principles. This document is typically used at the completion of a subcontractor's work scope, when final payment is being processed. It serves as evidence that the subcontractor has received all due payments and waives any further rights to claim against the property or retain possession of the site. The waiver protects property owners and main contractors from future claims while providing a clear record of project completion and payment satisfaction.
Suggested Sections

1. Project Identification: Details of the construction project including project name, address, and reference numbers

2. Party Information: Full legal names and details of the subcontractor providing the waiver and the contractor/owner receiving it

3. Payment Acknowledgment: Specific acknowledgment of the final payment amount received or to be received

4. Waiver Declaration: Clear statement waiving and releasing any rights to liens or claims against the property

5. Work Confirmation: Confirmation that all work has been completed and materials have been supplied as per the subcontract

6. Signature Block: Space for authorized signature, witness requirements, and notarization if required

Optional Sections

1. Conditional Waiver Clause: Optional section to make the waiver conditional upon receipt of final payment - used when payment hasn't yet been received

2. Reservation of Rights: Section preserving rights for retention amounts or disputed claims - used when there are outstanding issues

3. Previous Payments Schedule: Detailed listing of all previous payments received - used for complex projects with multiple payment phases

4. Indemnification: Additional indemnification provisions - used when required by specific project requirements

Suggested Schedules

1. Schedule A - Payment Details: Detailed breakdown of the final payment amount and any retained amounts

2. Schedule B - Project Scope: Description of completed work covered by the waiver

3. Appendix 1 - Supporting Documents: Copies of relevant invoices, completion certificates, or other supporting documentation

4. Appendix 2 - Company Resolution: Corporate resolution authorizing the signing of the waiver (if signatory is signing on behalf of a company)

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 Development

Engineering

Architecture

Project Management

Relevant Teams

Legal

Construction

Project Management

Finance

Commercial

Procurement

Risk Management

Contract Administration

Operations

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Quantity Surveyor

Site Manager

Commercial Director

Finance Manager

Claims Manager

Risk Manager

Procurement Manager

Construction Director

General Contractor

Subcontractor Manager

Industries
Construction Industry Development Board Act 38 of 2000: Provides the regulatory framework for construction contracts and industry practices in South Africa, including requirements for contractor registration and contract administration
Companies Act 71 of 2008: Governs business entities and their obligations in South Africa, relevant for understanding the legal standing of contractors and subcontractors
South African Common Law (Builder's Lien): Common law principles governing builder's liens (jus retentionis) which give contractors the right to retain possession of property until payment is received
Construction Industry Development Regulations: Supplementary regulations to the CIDB Act that specify requirements for construction contracts and payment security
National Credit Act 34 of 2005: Relevant for understanding the credit agreements and payment terms that might be involved in construction contracts
Prescribed Rate of Interest Act 55 of 1975: Governs the interest rates applicable to outstanding payments in commercial contracts, including construction agreements
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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