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Contractor Final Payment Release Letter Template for United Arab Emirates

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Key Requirements PROMPT example:

Contractor Final Payment Release Letter

"I need a Contractor Final Payment Release Letter for a completed shopping mall project in Dubai, with a final payment of AED 5 million and retention release, including provisions for a 2-year warranty period on mechanical systems that will commence from March 2025."

Document background
The Contractor Final Payment Release Letter is a standard document used in the United Arab Emirates construction and development industry to formally conclude the financial aspects of a contractor agreement. It is typically issued after project completion and final payment verification, serving as the contractor's acknowledgment of receiving all due payments and releasing the employer from future claims. This document is particularly important in the UAE context, where it helps ensure compliance with local construction laws and regulations, including UAE Federal Law No. 5 of 1985 (Civil Code) and Emirates-specific construction regulations. The release letter typically includes project details, payment confirmation, and specific release language, while potentially reserving certain warranty obligations as required by UAE law.
Suggested Sections

1. Letter Header: Date, reference number, and formal letterhead details

2. Addressee Details: Full name and address of the employer/client

3. Project Identification: Clear identification of the project and original contract details including date and reference numbers

4. Payment Confirmation: Confirmation of the final payment amount and that it represents full and final settlement

5. Release Statement: Formal release of all claims, demands, and liens related to the project

6. Acknowledgment: Confirmation that no further payments are due or outstanding

7. Authorization: Statement confirming authority to execute the release

8. Execution Block: Signature block including date and witness provisions

Optional Sections

1. Retention Release: Include when there is a separate retention amount being released

2. Surviving Warranties: Include when specific warranties continue beyond the release

3. Conditional Release Terms: Include when the release is conditional upon certain events or payments

4. Subcontractor Confirmation: Include when confirmation of subcontractor payments is required

5. Ongoing Obligations: Include when certain obligations survive the release

Suggested Schedules

1. Payment Schedule: Detailed breakdown of the final payment amount including any deductions or additions

2. Project Completion Certificate: Copy of the completion certificate or taking-over certificate

3. Outstanding Claims List: List of any claims being specifically waived or released

4. Subcontractor Releases: Copies of release letters from major subcontractors if required

Authors

Alex Denne

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

Relevant legal definitions


















Clauses















Relevant Industries

Construction

Real Estate Development

Infrastructure

Oil & Gas

Industrial Development

Commercial Development

Residential Development

Healthcare Construction

Education Construction

Hospitality Development

Retail Development

Transportation Infrastructure

Relevant Teams

Legal

Finance

Construction

Project Management

Commercial

Procurement

Contract Administration

Risk Management

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Quantity Surveyor

Commercial Manager

Finance Director

Legal Counsel

Project Director

Chief Financial Officer

Construction Director

Claims Manager

Procurement 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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