The Conditional Lien Release serves as a crucial document in construction payment processes across the United States. It is typically used when a contractor or subcontractor is ready to receive payment for completed work but wants to ensure their rights are protected until payment is actually received. The document specifies that the release of lien rights only becomes effective upon receipt of the agreed payment, providing security for both parties. Different states may have specific statutory requirements for Conditional Lien Releases, including mandatory forms and language.
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1. Project Identification: Details of the construction project, including address and description
2. Payment Information: Amount received or to be received, payment period covered
3. Conditional Statement: Statement that the release is conditional upon receipt of payment
4. Scope of Release: Specific rights being released and any reservations
5. Execution: Signature blocks and notary acknowledgment
1. Through-Date Specification: Specific date through which the release applies, used for progress payment releases
2. Exceptions: List of specific claims or rights being reserved, used when certain claims need to be preserved
3. Additional Certifications: Additional statements certifying payment to subcontractors, required by contract or state law
1. Schedule A - Payment Details: Detailed breakdown of payment amounts and work covered
2. Schedule B - Project Description: Detailed description of the project and work performed
3. Schedule C - Subcontractor List: List of subcontractors covered by the release (if applicable)
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