A Construction Lien Release is a crucial document in Malaysia's construction industry that provides formal documentation of the release of liens and payment claims against a property. This document is typically used after a contractor or subcontractor receives payment for completed work and needs to provide assurance that they waive their rights to file or maintain a lien against the property. The document must comply with Malaysian construction law, particularly the Construction Industry Payment and Adjudication Act 2012 (CIPAA), and should clearly identify the parties, project details, payment received, and the scope of the release. It serves as protection for property owners against double payment claims and helps contractors document proper payment receipt and claim release.
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1. Document Title and Date: Clear identification of the document as a Construction Lien Release with date of execution
2. Party Information: Full legal names and addresses of the releasing party (contractor/subcontractor) and the party receiving the release
3. Project Identification: Details of the construction project including address, project name, and contract reference numbers
4. Payment Acknowledgment: Acknowledgment of payments received, including the amount and date
5. Release Statement: Clear and unambiguous statement releasing all liens and claims
6. Execution Block: Signature blocks, witness requirements, and company seal section
1. Conditional Release Terms: Used when the release is conditional upon receipt of payment or other conditions
2. Partial Release Specifications: Required when the release only applies to specific work or time periods
3. Reservations of Rights: Used when certain claims or rights are being preserved
4. Statutory Declarations: Additional declarations required under Malaysian law regarding payment to subcontractors
5. Certification of Completion: When the release is tied to completion certification
1. Schedule A - Payment Details: Detailed breakdown of payments received and payment history
2. Schedule B - Scope of Released Work: Description of work completed and covered by the release
3. Schedule C - Outstanding Claims: List of any preserved or outstanding claims (if partial release)
4. Appendix 1 - Supporting Documents: Copies of relevant certificates, payment receipts, or completion certificates
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