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Lien Waiver

Lien Waiver Template for Indonesia

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Key Requirements PROMPT example:

Lien Waiver

"I need a Lien Waiver for my Jakarta office building construction project, to be signed by our main contractor following the final payment of IDR 5 billion scheduled for March 2025, which should include confirmation that all subcontractors have been paid."

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Document background
The Lien Waiver is a crucial document in Indonesian construction and development projects, used to protect property owners and project developers from future claims while ensuring contractors and suppliers receive proper compensation. This document becomes necessary when significant payments are made during project phases or upon project completion, requiring careful consideration of Indonesian Civil Code provisions and construction regulations. The Lien Waiver typically follows receipt of payment and includes detailed information about the project, payment amounts, and specific rights being waived. It serves as a vital risk management tool in Indonesian construction projects, providing legal certainty for all parties involved while complying with local law requirements for security interests and contractual obligations.
Suggested Sections

1. Header Information: Date, reference number, and title of document

2. Party Details: Full legal names and addresses of the waiving party (contractor/subcontractor/supplier) and the beneficiary party

3. Project Information: Details of the construction project or property, including address and any relevant contract numbers

4. Payment Details: Specification of payment amount received and payment period covered by the waiver

5. Waiver Declaration: Clear statement of the rights being waived, including specific claims, liens, or other rights being released

6. Scope of Waiver: Whether the waiver is conditional, unconditional, partial, or final

7. Certification: Statement certifying that all payments to subcontractors or suppliers have been made (if applicable)

8. Execution Block: Signature section with proper attestation requirements under Indonesian law

Optional Sections

1. Retained Rights: Section specifying any rights that are specifically retained or excluded from the waiver, used when certain claims need to be preserved

2. Payment Breakdown: Detailed breakdown of payments received and outstanding amounts, used in partial waivers or when complex payment structures are involved

3. Subcontractor Acknowledgment: Additional section for lower-tier subcontractor or supplier acknowledgments, used in projects with multiple tiers of contractors

4. Notarization Block: Section for notary authentication, used when formal notarization is required or preferred for additional legal certainty

Suggested Schedules

1. Schedule A - Payment Details: Detailed breakdown of payments received and waived, including dates and invoice numbers

2. Schedule B - Project Scope: Description of work or services provided under the original contract

3. Schedule C - Related Contracts: List of all relevant contracts and agreements referenced in the waiver

4. Appendix 1 - Supporting Documents: Copies of relevant payment proofs, invoices, 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 Industries

Construction

Real Estate Development

Infrastructure

Manufacturing

Mining

Oil and Gas

Industrial Development

Commercial Development

Residential Development

Engineering Services

Relevant Teams

Legal

Finance

Construction

Project Management

Commercial

Procurement

Risk Management

Contract Administration

Development

Claims and Disputes

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Finance Director

Chief Financial Officer

Project Director

Site Manager

Procurement Manager

Claims Manager

Risk Manager

Commercial Director

Development Manager

General Counsel

Company Secretary

Industries
Indonesian Civil Code (KUHPerdata): Fundamental law governing contracts, obligations, and property rights in Indonesia. Articles 1233-1456 specifically deal with contracts and obligations.
Law No. 4 of 1996 on Land Mortgage Rights: Regulates security rights over land and land-related objects, which is relevant for understanding the legal framework of releasing claims or liens on property.
Law No. 42 of 1999 on Fiduciary Security: Governs security interests in movable assets, both tangible and intangible, which may be relevant when waiving liens on non-land assets.
Law No. 2 of 2017 on Construction Services: Provides regulatory framework for construction services and related agreements, including provisions about payment security and contractors' rights.
Government Regulation No. 29 of 2000: Implements construction service regulations, including provisions about construction contracts and payment mechanisms.
Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment: Relevant for understanding the implications of waiving liens in relation to bankruptcy proceedings and debt settlements.
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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