The Contractor Final Payment Release Letter is a crucial document used at the completion of construction and service contracts in England and Wales. It is typically issued when the final payment is made to the contractor and serves multiple purposes: confirming receipt of all payments due under the contract, releasing the employer from future claims, and providing documentary evidence of project completion. The document should be carefully drafted to ensure it covers all relevant payments, including retention monies, and clearly states any exceptions to the release. It forms an important part of project close-out documentation and can help prevent future disputes about payment or outstanding claims.
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1. Date and Parties: Current date and identification of parties involved in the release
2. Project Details: Specific project information including contract reference numbers and project name
3. Payment Confirmation: Statement confirming the final payment amount being released
4. Release Statement: Formal statement releasing all claims and liabilities related to the project
5. Signature Block: Space for authorized signatures, names, titles, and dates
1. Retention Release: Section detailing the release of any retention monies held under the contract
2. Outstanding Works: Section listing any minor outstanding works or defects and their completion timeline
3. Exceptions to Release: Section specifying any exclusions or exceptions to the release of claims
1. Final Account Summary: Detailed breakdown of the final account figures including all payments made to date
2. Payment Certificate: Copy of the final payment certificate issued by the relevant authority
3. Outstanding Works Schedule: Detailed schedule of any remaining minor works and their agreed completion dates
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