Final Payment Certificate (Construction) Template for Pakistan

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Key Requirements PROMPT example:

Final Payment Certificate (Construction)

"Need to draft a Final Payment Certificate (Construction) for a commercial building project in Lahore, Pakistan, with a contract value of PKR 250 million, including resolution of three approved variations and release of 5% retention money."

Document background
The Final Payment Certificate (Construction) is a fundamental document in the Pakistani construction industry that marks the successful completion of a construction project and facilitates the final financial settlement between parties. It is typically issued after the defects liability period has expired and all contractual obligations have been fulfilled. This document is crucial in both private and public sector projects across Pakistan, requiring compliance with federal legislation such as the Contract Act 1872 and the Pakistan Engineering Council Act 1976, as well as relevant provincial regulations. The certificate includes comprehensive details of the final account, including adjustments for variations, claims settlements, and release of retention money. It serves as protection for both the employer and contractor, providing clear documentation of the project's financial closure and completion status.
Suggested Sections

1. Project Identification: Details of the project including contract reference number, project name, and location

2. Parties: Identification of the employer, contractor, and certifying authority/engineer

3. Reference Documents: List of relevant contract documents, previous interim certificates, and completion certificates

4. Works Completion Statement: Confirmation that works have been completed in accordance with the contract

5. Final Contract Value: Statement of the final adjusted contract sum including all variations

6. Payment History: Summary of previous payments made and retention held

7. Final Payment Amount: Calculation and statement of the final payment due, including release of retention

8. Tax Compliance Statement: Confirmation of tax compliance and any tax deductions applied

9. Certification: Formal certification statement and signatures of authorized parties

Optional Sections

1. Outstanding Claims Resolution: Required when there are settled claims or variations that affect the final payment

2. Defects Liability Statement: Include when the defects liability period has expired and all defects have been remedied

3. Third Party Clearances: Required when there are subcontractor clearances or third-party payments to be addressed

4. Performance Bond Release: Include when there is a performance bond to be released

5. Warranty Statements: Required when specific warranties extend beyond the final payment

6. Environmental Compliance: Include when project has specific environmental requirements that need final clearance

Suggested Schedules

1. Schedule A - Final Account Summary: Detailed breakdown of the final contract sum including all variations and adjustments

2. Schedule B - Outstanding Works List: List of any minor outstanding works or defects with agreed values (if applicable)

3. Schedule C - Retention Release Calculation: Detailed calculation of retention money and release schedule

4. Schedule D - Tax Deduction Summary: Breakdown of all tax deductions and withholdings

5. Appendix 1 - Completion Certificates: Copies of practical completion and defects liability completion certificates

6. Appendix 2 - Claims Settlement Documentation: Records of any settled claims or disputes affecting final payment

7. Appendix 3 - Statutory Declarations: Required declarations regarding payments to subcontractors and compliance with laws

8. Appendix 4 - As-Built Documentation: Confirmation of receipt of all required as-built drawings and documentation

Authors

Alex Denne

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

Relevant legal definitions
Relevant Industries

Commercial Construction

Residential Construction

Infrastructure Development

Industrial Construction

Public Works

Energy Infrastructure

Transportation Infrastructure

Healthcare Facilities

Educational Facilities

Retail Development

Hospitality Construction

Relevant Teams

Legal

Finance

Construction

Project Management

Commercial

Procurement

Contracts Administration

Quality Assurance

Audit

Risk Management

Relevant Roles

Project Manager

Construction Manager

Quantity Surveyor

Contract Administrator

Project Engineer

Site Engineer

Chief Financial Officer

Financial Controller

Construction Director

Commercial Manager

Claims Manager

Legal Counsel

Procurement Manager

Cost Controller

Audit 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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