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General Contractor Lien Release Form

General Contractor Lien Release Form Template for Indonesia

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Key Requirements PROMPT example:

General Contractor Lien Release Form

"I need a General Contractor Lien Release Form for my Jakarta commercial building project, with an unconditional final payment release of IDR 5.5 billion, to be executed by March 2025."

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Document background
The General Contractor Lien Release Form is a critical document in Indonesian construction projects that protects both property owners and contractors by formally documenting the release of lien rights following payment for services. Used primarily upon completion of work phases or final payment, this document ensures compliance with Indonesian Construction Services Law (Law No. 2 of 2017) and related regulations. The form includes essential details such as project identification, payment confirmation, and scope of release, serving as legal evidence that the contractor has received payment and waives their right to place a lien on the property. This document is particularly important in Indonesia's civil law system, where formal documentation of payment and release of rights is crucial for protecting all parties' interests in construction projects.
Suggested Sections

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

2. Parties: Identification of the General Contractor (releaser) and the Property Owner/Developer (releasee), including complete legal names and addresses

3. Payment Acknowledgment: Confirmation of the payment amount received and date of receipt

4. Scope of Release: Clear description of what rights are being released, including the time period covered by the release

5. Property Description: Legal description of the property where the work was performed

6. Representations and Warranties: Contractor's confirmation that all subcontractors and suppliers have been paid

7. Execution: Signature block with date and notarization requirements

Optional Sections

1. Conditional Release Provisions: Used when the release is conditional upon receipt of payment

2. Partial Payment Terms: Include when the release relates to a progress payment rather than final payment

3. Reservation of Rights: Used when certain rights are being retained or when release is limited to specific claims

4. Subcontractor Confirmation: Additional section for confirming status of payments to subcontractors when required by project terms

5. Governing Law and Jurisdiction: Specific reference to Indonesian law and jurisdiction when dealing with international parties

Suggested Schedules

1. Schedule A - Payment Details: Detailed breakdown of payment amounts, including any previous payments and remaining balance

2. Schedule B - Project Scope: Description of work completed that is covered by this lien release

3. Schedule C - Supporting Documents: List of attached supporting documentation such as payment receipts or completion certificates

4. Appendix 1 - Notarial Requirements: Specific notarial forms or requirements under Indonesian law

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 Development

Industrial Construction

Public Works

Mining Infrastructure

Energy Facilities

Healthcare Facilities

Relevant Teams

Legal

Finance

Project Management

Construction Management

Contract Administration

Risk Management

Property Development

Commercial Operations

Site Operations

Document Control

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Finance Director

Property Developer

Site Superintendent

Commercial Director

Risk Manager

Claims Manager

Construction Supervisor

Development Manager

Chief Financial Officer

General Counsel

Project Coordinator

Industries
Law No. 2 of 2017: The Construction Services Law (Jasa Konstruksi) - Primary legislation governing construction services in Indonesia, including contractor rights and obligations
Indonesian Civil Code (KUHPerdata): Particularly Articles 1150-1160 regarding security rights and Book III on Contracts and Obligations - Provides the basic framework for contractual relationships and security interests
Government Regulation No. 22 of 2020: Implementation regulation for Construction Services Law - Details specific requirements for construction contracts and payment security
Law No. 4 of 1996: Law on Land Mortgage Rights (Hak Tanggungan) - Relevant for understanding property rights and encumbrances on real property in construction contexts
Minister of Public Works Regulation No. 07/PRT/M/2019: Standards for Construction Services - Includes provisions on payment mechanisms and security in construction projects
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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