ABSTRACT
The origin of the word 'Liens' can be traced to a Mechanic's Lien. In a construction contract, the word Mechanic's Lien seems odd. A lending bank can enforce a lien on a house property belonging to the loan borrower as a guarantee for future loan repayments, failing which the bank can exercise its legal right under lien over the personal property. Owner, in Contract, includes clauses to prevent any claim on its personal property, which may comprise the Plant, Facilities, Site, or property on which a Contractor has performed work during the Project period through the engagement of Subcontractors by Contractor, as a lien is basically claimed on the personal property. The final payment represents the final contract price with adjustments made for an agreed extra price on approved Change Orders, approved claims, back-charges/deductions, and any and all claims arising from a lien. A similar claims and liens release letter also applies to Subcontractors and Vendors of the Contractor.
