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Final Waiver Of Lien

Final Waiver Of Lien Template for Indonesia

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Key Requirements PROMPT example:

Final Waiver Of Lien

"I need a Final Waiver of Lien for a completed warehouse construction project in Jakarta, where we've received the final payment of IDR 2.5 billion on January 15, 2025, and need to confirm all subcontractors have been paid in full."

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Document background
The Final Waiver of Lien is a critical document in Indonesian construction projects that marks the successful completion of work and receipt of final payment. This document is typically used during the project closeout phase when a contractor, subcontractor, or supplier has received all due payments and is ready to relinquish their lien rights. Under Indonesian law, particularly the Civil Code (KUHPerdata) and Law No. 2 of 2017 on Construction Services, the Final Waiver of Lien serves as a legal safeguard for property owners, ensuring that no future claims can be made against their property for work already compensated. The document includes essential details such as project information, payment amounts, and explicit waiver language, and often requires notarization to be legally effective in Indonesia.
Suggested Sections

1. Identification of Parties: Full legal names and details of the Contractor/Subcontractor (Waiving Party) and the Owner/General Contractor (Beneficiary Party)

2. Project Information: Specific details of the construction project, including project name, location, and any relevant contract numbers or dates

3. Payment Acknowledgment: Confirmation of receipt of final payment amount and total contract sum received to date

4. Waiver Declaration: Express waiver of all lien rights and claims relating to the project, labor, services, and materials provided

5. Representation of Authority: Statement confirming the signing party's authority to execute the waiver

6. Governing Law: Specification that Indonesian law governs the waiver

7. Execution: Signature blocks, date, and notarization requirements

Optional Sections

1. Conditional Provisions: Used when the waiver is conditional upon receipt of final payment, specifying the conditions that must be met

2. Reservation of Rights: Include when certain rights need to be preserved, such as retention amounts or pending change orders

3. Subcontractor Confirmation: Added when confirmation is needed that all subcontractors and suppliers have been paid

4. Previous Payments Schedule: Used in complex projects to list all previous payments received and reconciled

5. Indemnification: Added when additional protection is needed against future claims from third parties

Suggested Schedules

1. Schedule A - Project Details: Detailed description of the project scope and contract reference documents

2. Schedule B - Payment Summary: Breakdown of all payments received, including the final payment amount

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

4. Appendix 2 - Authorization Documents: Corporate resolutions or power of attorney documents proving authority to execute the waiver

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

Industrial Development

Residential Development

Mining

Oil and Gas

Manufacturing

Hospitality

Relevant Teams

Legal

Finance

Construction

Project Management

Contract Administration

Risk Management

Procurement

Commercial

Development

Operations

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Chief Financial Officer

Development Director

Site Supervisor

Procurement Manager

Finance Director

Property Manager

Construction Director

Commercial Director

Risk Manager

Company Secretary

General Counsel

Industries
Indonesian Civil Code (KUHPerdata): The fundamental law governing contractual relationships, obligations, and property rights in Indonesia. Articles 1150-1160 specifically deal with security rights and guarantees.
Law No. 4 of 1996 on Land Mortgage Rights: Governs security rights over land and objects related to land, which is relevant for construction-related liens and their waiver.
Law No. 42 of 1999 on Fiduciary Security: Regulates security interests in movable assets and their release, which may be relevant depending on the type of lien being waived.
Law No. 2 of 2017 on Construction Services: Provides framework for construction services and related rights, including provisions about payment security and contractor rights.
Government Regulation No. 29 of 2000 on Construction Services: Implementing regulation that details construction service delivery, including provisions about payment mechanisms and security rights.
Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment Obligations: Contains provisions relevant to creditor rights and the release of security interests in bankruptcy contexts.
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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