Conditional Final Release Form

Conditional Final Release Form for Canada

Conditional Final Release Form Template for Canada

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What is a Conditional Final Release Form?

The Conditional Final Release Form is a critical document in Canadian construction project management, used when parties are approaching project completion and final payment. This document is typically executed when a contractor, subcontractor, or supplier is ready to release their lien rights and claims against the project, but wants to ensure they receive final payment before the release becomes effective. The form must comply with provincial construction lien legislation and includes specific conditions that must be met for the release to take effect. It provides protection for both the paying party (who receives assurance against future claims) and the releasing party (who maintains their rights until payment is received). The document is particularly important in larger construction projects where multiple parties are involved and significant sums are being paid.

What sections should be included in a Conditional Final Release Form?

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

2. Parties: Identification of the releasing party (typically contractor/subcontractor) and the party receiving the release (typically owner/general contractor)

3. Payment Acknowledgment: Statement of the final payment amount being received and reference to all previous payments

4. Scope of Release: Detailed description of claims, liens, and rights being released upon satisfaction of conditions

5. Conditions: Clear statement of the conditions that must be met for the release to become effective, typically including receipt and clearance of final payment

6. Representations and Warranties: Statements confirming authority to execute the release and that all subcontractors and suppliers have been paid

7. Execution: Signature blocks, date, and notary section if required

What sections are optional to include in a Conditional Final Release Form?

1. Excluded Claims: Section listing any specific claims or rights that are explicitly excluded from the release, used when certain disputes or claims are being preserved

2. Subcontractor Confirmation: Additional section for confirming that all subcontractors and suppliers have provided their own releases, used in more complex projects

3. Holdback Release: Specific section addressing the release of statutory holdback, used when applicable under provincial legislation

4. Insurance Claims: Section addressing any pending or potential insurance claims, used when there are ongoing insurance matters

What schedules should be included in a Conditional Final Release Form?

1. Schedule A - Project Details: Detailed description of the project scope and work performed

2. Schedule B - Payment Summary: Breakdown of all payments received and final payment details

3. Schedule C - Subcontractor Releases: Copies of releases from subcontractors and suppliers, if applicable

4. Schedule D - Outstanding Change Orders: List of any change orders included in or excluded from the release

Authors

Alex Denne

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

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Lien Waiver (Real Estate)

A Canadian legal document where a party waives their right to file a construction lien on a property, typically used in construction projects across Canadian provinces to acknowledge payment and release lien rights.

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Download a Standard Template

What is a Conditional Final Release Form?

What sections should be included in a Conditional Final Release Form?

What sections are optional to include in a Conditional Final Release Form?

What schedules should be included in a Conditional Final Release Form?

Authors

Alex Denne

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