Affidavit Of Bills Paid And Release Of Liens By Contractor Template for England and Wales

When you're involved in a construction project in England and Wales, ensuring all bills are paid and liens are properly released is crucial for protecting your property interests. The Affidavit Of Bills Paid And Release Of Liens By Contractor provides a sworn legal declaration that addresses these concerns, offering peace of mind to property owners, lenders, and other stakeholders in the construction process.

When do you need this document?

You'll need this affidavit in several critical situations throughout your construction project. Property owners typically require it before making final payments to contractors, ensuring that all subcontractors and suppliers have been paid to prevent future lien claims. Lenders often demand this document before releasing final construction loan funds or converting construction loans to permanent mortgages. If you're purchasing a newly constructed property, your solicitor may require this affidavit to ensure clear title transfer. Additionally, general contractors use this document when working with subcontractors to formally release any potential claims against the property upon payment completion.

Key legal considerations

The affidavit must comply with specific legal requirements under English and Welsh law. The document serves as a statement of truth under Civil Procedure Rules Part 22, meaning false declarations can result in contempt of court proceedings. You must ensure the contractor has actual authority to release liens and make sworn declarations on behalf of their company, particularly important under the Companies Act 2006 requirements. The release affects not only direct contractual relationships but may also impact third-party rights under the Contracts (Rights of Third Parties) Act 1999. Consider the limitation periods under the Limitation Act 1980, as the release should specify the time frame for which it remains effective. The affidavit should clearly identify all relevant parties, project details, and specific payments covered to ensure comprehensive legal protection.

Legal requirements in England and Wales

Under the Construction Act 1996, payment mechanisms in construction contracts are strictly regulated, and this affidavit supports compliance with statutory payment provisions. The document must be properly executed according to the Civil Procedure Rules, typically requiring a statement of truth and proper identification of the person making the declaration. If executed by a company, ensure compliance with Companies Act 2006 requirements for corporate execution, including proper authority of signatories. The Construction (Design and Management) Regulations 2015 define contractor obligations, and the affidavit should reflect completion of these responsibilities. While notarisation isn't always mandatory, many parties prefer it for additional legal certainty. Ensure the affidavit specifically addresses all potential claims arising from the construction work and includes clear project identification to prevent future disputes about scope.