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Conditional Lien Waiver

Conditional Lien Waiver Template for Malaysia

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Key Requirements PROMPT example:

Conditional Lien Waiver

"I need a Conditional Lien Waiver for a commercial construction project in Kuala Lumpur, where my company is the general contractor waiving lien rights upon receipt of the March 2025 progress payment of RM 2.5 million from the property developer."

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Document background
The Conditional Lien Waiver is a critical document in Malaysian construction and development projects, used when parties need to manage payment-related risks while protecting their respective interests. This document becomes particularly important in situations where staged payments are being made and parties need assurance about payment receipt and lien release. Under Malaysian law, particularly the Construction Industry Payment and Adjudication Act 2012 (CIPAA), such waivers help maintain smooth payment flows while providing security to all parties. The Conditional Lien Waiver typically includes details about the project, payment amount, scope of work completed, and specific conditions that must be met for the waiver to take effect. It's commonly used in both private and public construction projects throughout Malaysia, providing a standardized approach to managing lien rights and payment security.
Suggested Sections

1. Parties: Identification of the waiving party (typically contractor/subcontractor) and the party receiving the waiver (typically property owner/general contractor)

2. Background: Brief description of the project, original contract, and the context for the lien waiver

3. Definitions: Key terms used in the document including 'Lien Rights', 'Project', 'Contract Price', and 'Progress Payment'

4. Scope of Work: Description of the specific work or services provided that relates to this lien waiver

5. Payment Details: Specific amount of payment that triggers the lien waiver and payment reference details

6. Conditional Waiver Statement: Clear statement that the waiver only becomes effective upon receipt of specified payment

7. Rights Reserved: Statement of any rights retained by the waiving party, including rights related to unpaid retentions or unsigned change orders

8. Verification: Confirmation of work completion and payment amounts

9. Execution: Signature blocks and execution requirements including witness provisions

Optional Sections

1. Through-Date Provision: Used when the waiver applies to work completed through a specific date rather than the entire project

2. Subordinate Parties Waiver: Include when the waiver needs to extend to subcontractors or suppliers under the waiving party

3. Exceptions and Exclusions: Used when specific claims or rights need to be explicitly excluded from the waiver

4. Release of Securities: Include when other forms of security need to be released alongside the lien waiver

5. Governing Law and Jurisdiction: Optional if jurisdiction is clear from context, but recommended for cross-border projects

Suggested Schedules

1. Schedule A - Project Details: Detailed description of the project including location, scope, and relevant contract numbers

2. Schedule B - Payment Summary: Breakdown of payments received to date, current payment, and remaining balance

3. Schedule C - Work Completion Certificate: Certification of work completion related to the waiver amount

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

5. Appendix 2 - Original Contract Reference: Relevant excerpts or references to the original contract terms regarding liens and payments

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Industrial Development

Energy and Utilities

Mining and Resources

Healthcare Facilities

Hospitality

Educational Facilities

Relevant Teams

Legal

Finance

Commercial

Construction

Project Management

Contract Administration

Risk Management

Procurement

Operations

Relevant Roles

Project Manager

Contract Manager

Construction Manager

Legal Counsel

Finance Director

Commercial Director

Quantity Surveyor

Property Developer

Construction Site Supervisor

Procurement Manager

Risk Manager

Claims Manager

Industries





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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