Contractor Final Payment Release Letter Template for United Arab Emirates

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.

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