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Partial Lien Waiver for Indonesia

Partial Lien Waiver Template for Indonesia

A Partial Lien Waiver document under Indonesian law serves as a legal instrument through which a contractor, subcontractor, or supplier waives their lien rights for a specific portion of work completed and paid for, while maintaining rights for unpaid work or future services. The document must comply with Indonesian Civil Code requirements and Construction Services Law No. 2 of 2017, ensuring proper documentation of partial payment receipt and the specific scope of rights being waived. It provides crucial protection for property owners while allowing contractors to maintain their rights for outstanding payments.

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Partial Lien Waiver

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What is a Partial Lien Waiver?

The Partial Lien Waiver is a critical document in Indonesian construction projects, used when partial payments are made for ongoing construction work or materials supplied. It serves as evidence that a contractor, subcontractor, or supplier has received payment for a specific portion of their work and accordingly waives their lien rights for that particular payment. This document is essential in maintaining clear payment records and protecting all parties' interests under Indonesian law, particularly in compliance with the Civil Code (KUHPerdata) and Construction Services Law. The Partial Lien Waiver should be used at each payment milestone throughout the project, ensuring that lien rights are progressively waived as payments are made while maintaining rights for unpaid work.

What sections should be included in a Partial Lien Waiver?

1. Project Identification: Detailed information about the construction project, including project name, address, and any relevant permit numbers

2. Parties: Identification of the waiving party (contractor/subcontractor/supplier) and the party receiving the waiver (owner/general contractor)

3. Payment Acknowledgment: Specific details of the payment received, including amount, date, and payment period covered

4. Waiver Statement: Clear statement of the lien rights being waived, specifically noting this is for partial payment

5. Scope of Waiver: Explicit description of what rights are being waived and up to what date or payment amount

6. Reservation of Rights: Statement preserving rights for unpaid amounts and future work

7. Execution Block: Signature blocks, date, and notarization section as required under Indonesian law

What sections are optional to include in a Partial Lien Waiver?

1. Conditional Statement: Optional section making the waiver conditional upon receipt of payment (used when waiver is submitted before payment is received)

2. Prior Rights Affirmation: Statement confirming no prior assignment of lien rights (used when specifically required by the paying party)

3. Supporting Documentation Reference: Reference to attached payment documentation or invoices (used for complex payment situations)

4. Third-Party Rights: Section addressing rights of subcontractors or suppliers under the waiving party (used when the contractor has subcontractors)

What schedules should be included in a Partial Lien Waiver?

1. Schedule A - Payment Details: Detailed breakdown of payment amounts, including previous payments and remaining balance

2. Schedule B - Work Completed: Description of work completed for which the partial lien waiver is being provided

3. Appendix 1 - Project Documents: Copies of relevant permits or project identification documents

4. Appendix 2 - Authorization Documents: Corporate authorization documents if required under Indonesian law

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

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Waiver

Cost

Free to use
Relevant legal definitions


























Clauses
















Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Industrial Development

Residential Development

Mining

Oil and Gas

Manufacturing

Hospitality

Relevant Teams

Legal

Construction

Project Management

Finance

Procurement

Risk Management

Contract Administration

Operations

Development

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Chief Financial Officer

Project Director

Site Supervisor

Procurement Manager

Risk Manager

Claims Manager

Development Director

Construction Coordinator

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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