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General Contractor Lien Release Form Template for Indonesia

A legally binding document used in Indonesian construction projects that provides formal acknowledgment from a general contractor that they have received payment for their services and subsequently release their right to place a lien on the property. This document complies with Indonesian Construction Services Law (Law No. 2 of 2017) and related regulations, providing property owners with protection against future claims while ensuring contractors properly document the receipt of payment for services rendered. It serves as a crucial tool in construction project closeout procedures and payment management under Indonesian jurisdiction.

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What is a General Contractor Lien Release Form?

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.

What sections should be included in a General Contractor Lien Release Form?

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

What sections are optional to include in a General Contractor Lien Release Form?

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

What schedules should be included in a General Contractor Lien Release Form?

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Release of Claims

Cost

Free to use

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