The Contractor Final Payment Release Letter is a critical document used at the conclusion of a contract when final payment is made to the contractor. It provides legal closure to the contractual relationship and protects the client from future claims or liens. Used across various industries in the United States, this document typically includes details of the final payment, confirmation of work completion, and explicit waiver of future claims. It's particularly important in construction and project-based contracts where multiple payments have been made over time. The document must comply with state-specific requirements and may need notarization to be legally binding.
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1. Date and Parties: Identification of contractor and client/owner with full legal names and addresses
2. Project Details: Description of completed work, original contract reference number and date, project location, and scope of work
3. Payment Amount: Statement of final payment sum, confirmation of receipt, and acknowledgment of full compensation
4. Release Statement: Formal release of all claims, liens, and demands related to the project and contract
5. Signature Block: Execution portion including contractor signature, date, witness/notary section if required
1. Warranty Statement: Optional section detailing any ongoing warranty obligations that survive the final payment release
2. Conditional Release: Section making the release conditional upon final payment clearing the bank
3. Reservation of Rights: Section specifying any particular rights or claims the contractor wishes to preserve
1. Payment History Schedule: Detailed summary of all payments made under the contract including dates and amounts
2. Project Completion Certificate: Official documentation certifying the completion of all contracted work
3. Lien Waiver Forms: State-specific lien waiver documentation required for final payment
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