Partial Conditional Lien Waiver for Canada

Partial Conditional Lien Waiver Template for Canada

A Partial Conditional Lien Waiver is a legal document used in Canadian construction projects to waive lien rights for a specific portion of work or period, contingent upon receipt of a specified payment. This document, governed by provincial construction lien legislation, provides a mechanism for contractors, subcontractors, or suppliers to partially waive their right to file a construction lien, but only after receiving the agreed-upon payment. It helps maintain smooth payment flow in construction projects while protecting the rights of all parties involved. The document includes specific details about the project, payment amount, and work completed, while preserving rights for unpaid amounts and future work.

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What is a Partial Conditional Lien Waiver?

The Partial Conditional Lien Waiver is a crucial document in Canadian construction projects that helps manage risk and ensure proper payment flow while protecting the rights of various project stakeholders. This document is typically used when partial payments are made during ongoing construction projects, where the party receiving payment agrees to waive their lien rights for the specific portion of work completed and paid for, conditional upon actual receipt of the specified payment. The waiver is governed by provincial construction lien legislation, which varies by jurisdiction but maintains similar core principles across Canada. Partial Conditional Lien Waivers are essential tools in construction payment management, as they provide security for property owners while ensuring contractors and subcontractors maintain their rights for unpaid work. The document must comply with specific provincial requirements and typically includes project details, payment information, and clear conditions for the waiver's effectiveness.

What sections should be included in a Partial Conditional Lien Waiver?

1. Project Identification: Details of the construction project including project name, address, and any relevant project numbers or identifiers

2. Parties: Identification of the waiving party (typically contractor/subcontractor/supplier) and the party receiving the waiver (typically owner/contractor)

3. Payment Amount: Specific details of the payment amount being received and the period or work covered by this partial waiver

4. Conditional Terms: Clear statement that the waiver is conditional upon receipt of the specified payment

5. Waiver Statement: Specific rights being waived, including lien rights up to a specific date or for specific work

6. Reservation of Rights: Statement preserving rights for retention amounts, unbilled work, and pending or future claims

7. Execution: Signature block with date and notary section if required by jurisdiction

What sections are optional to include in a Partial Conditional Lien Waiver?

1. Prior Rights Acknowledgment: Section acknowledging receipt of previous payments, used when there is a payment history to be confirmed

2. Exceptions List: Detailed list of specific claims or rights being preserved, used when there are known pending claims or disputes

3. Contract Reference: Details of the original contract and any modifications, used in more complex projects with multiple contracts or change orders

4. Statutory Declarations: Required in some jurisdictions to confirm payment to subcontractors and suppliers

What schedules should be included in a Partial Conditional Lien Waiver?

1. Schedule A - Payment Details: Breakdown of the payment amount, including any specific invoices or payment applications being covered

2. Schedule B - Project Scope: Description of work completed and covered by this waiver, used for complex projects with multiple phases or scopes

3. Appendix 1 - Supporting Documents: Copies of relevant invoices, payment applications, 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

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Release of Lien

Cost

Free to use
Relevant Industries

Commercial Construction

Residential Construction

Industrial Construction

Infrastructure Development

Real Estate Development

Mining

Oil and Gas

Healthcare Construction

Educational Facilities

Retail Construction

Manufacturing Facilities

Municipal Projects

Relevant Teams

Legal

Finance

Procurement

Project Management

Operations

Risk Management

Accounts Payable

Contract Administration

Construction Operations

Project Controls

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Chief Financial Officer

Accounts Payable Manager

Project Coordinator

Construction Supervisor

Risk Manager

Claims Manager

Finance Director

Project Control Specialist

Procurement Manager

Site Superintendent

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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