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Final Waiver And Release Of Lien

Final Waiver And Release Of Lien Template for Indonesia

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Key Requirements PROMPT example:

Final Waiver And Release Of Lien

"I need a Final Waiver and Release of Lien for a shopping mall construction project in Jakarta, where I'm the general contractor who has received the final payment of IDR 15 billion on March 15, 2025, and need to release all lien rights against the property owner PT Metro Development."

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Document background
The Final Waiver and Release of Lien is a critical document in Indonesian construction and development projects, used when a contractor, subcontractor, or supplier has completed their work and received final payment. This document is essential for project closeout and compliance with Indonesian Construction Services Law No. 2 of 2017 and the Civil Code (KUHPerdata). It serves as legal evidence that all payments have been received and that the signing party waives any right to file a lien against the property. The document typically includes details of the project, payment confirmation, and explicit waiver language. It must be properly executed, often requiring notarization, to be legally binding under Indonesian law. This document is particularly important for property owners and developers as it helps ensure clear property title and prevents future payment disputes or claims.
Suggested Sections

1. Parties: Identification of the Releasor (contractor/subcontractor/supplier) and the Releasee (owner/contractor), including their complete legal names, addresses, and registration numbers

2. Background: Brief description of the original contract, project details, and the context leading to this release

3. Definitions: Key terms used in the document including 'Lien', 'Project', 'Contract', 'Property', and 'Final Payment'

4. Acknowledgment of Payment: Confirmation of the receipt of final payment amount and that all payments under the contract have been received in full

5. Release and Waiver: Express waiver of all lien rights and claims related to the project, including present and future claims

6. Representations and Warranties: Statements confirming that all subcontractors and suppliers have been paid and no outstanding claims exist

7. Governing Law: Specification that Indonesian law governs the document and jurisdiction details

8. Execution: Formal signing section including space for witnesses and notary attestation as required under Indonesian law

Optional Sections

1. Conditional Release Provisions: Used when the release is contingent upon certain conditions being met, such as clearance of final payment

2. Subcontractor Confirmation: Required when the releasor is a primary contractor, listing all subcontractors and confirming their payments

3. Retention Release: Included when there is a separate retention amount being released

4. Exceptions and Reservations: Used when certain claims or rights are specifically excluded from the release

5. Insurance Claims Waiver: Added when specifically waiving rights to insurance claims related to the project

Suggested Schedules

1. Schedule A - Property Description: Legal description of the property involved in the project

2. Schedule B - Payment Details: Detailed breakdown of all payments received, including the final payment amount

3. Schedule C - Contract Reference: Details of the original contract and any amendments

4. Appendix 1 - Subcontractor Releases: Copies of lien releases from all subcontractors and suppliers (if applicable)

5. Appendix 2 - Supporting Documents: Relevant payment proofs, completion certificates, 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

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

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Property

Industrial Development

Engineering Services

Architecture

Building Materials Supply

Property Management

Relevant Teams

Legal

Construction Management

Project Management

Finance

Procurement

Compliance

Risk Management

Real Estate

Operations

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Property Developer

Site Supervisor

Procurement Manager

Finance Director

Real Estate Manager

Construction Director

Compliance Officer

Risk Manager

Industries
Indonesian Civil Code (KUHPerdata): The fundamental law governing contracts, obligations, and property rights in Indonesia, particularly Articles 1320-1337 on contract validity and Articles 1150-1160 on security rights
Law No. 2 of 2017 on Construction Services: Regulates construction services in Indonesia, including provisions on payment security, contractors' rights, and obligations in construction projects
Law No. 4 of 1996 on Land Mortgage Rights: Governs security rights over land and land-related objects, including the process of establishing and releasing liens on property
Law No. 30 of 2004 on Notary Position: Regulates the role of notaries in Indonesia and the requirements for legal documents, including releases and waivers related to property rights
Government Regulation No. 29 of 2000: Implements construction service regulations, including provisions on construction contracts and payment mechanisms
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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