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Subcontractor Lien Release Form

Subcontractor Lien Release Form Template for South Africa

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Key Requirements PROMPT example:

Subcontractor Lien Release Form

"I need a Subcontractor Lien Release Form for a final payment of R2.5 million for completed electrical installation works at our Cape Town commercial building project, with the release to be conditional upon payment clearance expected by March 15, 2025."

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Document background
The Subcontractor Lien Release Form is a critical document in South African construction projects that protects all parties involved in the construction process. It is typically used after a subcontractor receives payment for completed work, whether as a progress payment or final payment. The form serves as legal evidence that the subcontractor has been compensated and relinquishes their right to file a lien against the property for the specified work or payment period. This document is particularly important in South Africa's construction industry, where it helps maintain clear payment records and prevents double payment claims. It must comply with local construction laws, including the Construction Industry Development Board Act and related regulations. The form should clearly identify the project, parties involved, payment amount, and scope of work being released, and may be either conditional (pending payment) or unconditional (after payment is received).
Suggested Sections

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

2. Parties: Full legal names and details of the subcontractor providing the release, the contractor receiving it, and the property owner

3. Payment Acknowledgment: Specific amount received and confirmation of payment, including payment date and method

4. Scope of Work: Description of the work performed that is covered by this lien release

5. Release Statement: Formal waiver language releasing all lien rights for the specified work and payment

6. Period Coverage: Specific time period or progress payment number covered by the release

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

8. Execution: Signature block with date and witness requirements

Optional Sections

1. Conditional Release Language: Used when the release is conditional upon receipt of payment, rather than for payment already received

2. Retention Rights Reservation: Include when retaining rights to any retained amounts not yet due

3. Progress Payment Specification: Used for partial releases where only specific progress payments are being released

4. Dispute Reservation: Include when there are ongoing disputes or claims that should be preserved

5. Additional Beneficiaries: Used when the release needs to extend to additional parties such as lenders or project managers

Suggested Schedules

1. Schedule A - Payment Details: Detailed breakdown of payments received and work completed

2. Schedule B - Project Scope: Detailed description of work performed and materials supplied

3. Appendix 1 - Supporting Documents: Copies of relevant invoices, payment proofs, or work completion certificates

4. Appendix 2 - Prior Liens: List of any previous liens filed and their status

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

Commercial Property

Residential Property

Industrial Construction

Mining

Retail Development

Healthcare Facilities

Educational Institutions

Government Infrastructure

Relevant Teams

Legal

Construction

Operations

Finance

Procurement

Contract Administration

Project Management

Risk Management

Accounts Payable

Commercial

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Quantity Surveyor

Site Manager

Financial Controller

Operations Manager

Procurement Manager

Construction Director

Claims Manager

Risk Manager

Accounts Payable Manager

Commercial Manager

Industries
Construction Industry Development Board Act 38 of 2000: Establishes the regulatory framework for construction contracts and industry development in South Africa, including requirements for contractor registration and project management
Security by Means of Movable Property Act 57 of 1993: Governs the creation and enforcement of security interests in movable property, which is relevant for lien rights and their release
Construction Regulations 2014: Regulations under the Occupational Health and Safety Act that specify safety requirements and responsibilities in construction projects
Building Industry Bargaining Council Agreements: Collective agreements that regulate employment conditions and payment terms in the building industry, which can affect subcontractor payments and liens
Construction Industry Development Regulations: Provides specific guidelines for construction contracts, including payment security and dispute resolution mechanisms
Prescribed Rate of Interest Act 55 of 1975: Governs interest rates applicable to outstanding payments in construction contracts and liens
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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