Conditional Waiver And Release On Final Payment Template for Saudi Arabia

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Key Requirements PROMPT example:

Conditional Waiver And Release On Final Payment

"I need a Conditional Waiver and Release on Final Payment document for a large-scale construction project in Riyadh, Saudi Arabia, where we have 5 major subcontractors who also need to provide releases, with the final payment amount of 15 million SAR to be released by March 2025."

Document background
The Conditional Waiver and Release on Final Payment is a critical document used in Saudi Arabian construction and commercial projects during the project closeout phase. It is specifically designed to protect both parties' interests during the final payment process, ensuring that contractors receive their due payment while owners obtain necessary releases from potential future claims. This document type is particularly important in the Saudi Arabian context, where it must comply with both civil law and Sharia principles. The conditional nature of the waiver means it only becomes effective upon actual receipt and clearance of the final payment, typically including details of the payment amount, any retained amounts being released, and specific conditions that must be met. The document is commonly used in both private and public sector projects, requiring careful consideration of local legal requirements, payment procedures, and dispute resolution mechanisms.
Suggested Sections

1. Parties: Identification of the Contractor/Payee and the Owner/Payor, including their full legal names, addresses, and commercial registration numbers

2. Background: Brief description of the original contract, project details, and context for the final payment and waiver

3. Definitions: Key terms used in the document including 'Final Payment', 'Claims', 'Lien Rights', and other relevant terms

4. Final Payment Amount: Precise statement of the final payment amount in both numbers and words, including any applicable taxes

5. Conditions for Release: Clear listing of all conditions that must be met before the waiver becomes effective, primarily the receipt of final payment

6. Scope of Waiver: Detailed description of what claims, rights, and demands are being waived upon satisfaction of conditions

7. Representations and Warranties: Contractor's confirmation that all subcontractors and suppliers have been paid and no outstanding claims exist

8. Governing Law and Jurisdiction: Explicit statement of Saudi law application and relevant court jurisdiction

9. Execution: Signature blocks with details required under Saudi law, including names, titles, and official stamps

Optional Sections

1. Retention Release: Include when the final payment includes release of retained amounts, specifying the retention amount and release terms

2. Subcontractor Confirmations: Include when there are major subcontractors who need to confirm receipt of their payments

3. Exceptions to Waiver: Include when specific claims or rights are being preserved despite the general waiver

4. Islamic Law Compliance: Include when specific Sharia compliance provisions need to be explicitly stated

5. Language Preference: Include when document is bilingual Arabic/English to specify which version prevails

6. Previous Payments Acknowledgment: Include when there's a need to confirm receipt of all previous progress payments

Suggested Schedules

1. Schedule A - Payment Details: Detailed breakdown of the final payment amount, including any adjustments, deductions, or additions

2. Schedule B - Outstanding Claims List: List of any specifically excluded claims or reserved rights not covered by the waiver

3. Schedule C - Subcontractor Releases: Copies of releases or waivers from major subcontractors and suppliers

4. Appendix 1 - Original Contract Reference: Key details from the original contract including date, reference number, and basic scope

5. Appendix 2 - Payment History: Summary of all previous payments made under the contract

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 Industries

Construction

Real Estate Development

Infrastructure

Oil & Gas

Manufacturing

Industrial Projects

Commercial Development

Healthcare Facilities

Educational Facilities

Hospitality

Retail Development

Relevant Teams

Legal

Finance

Operations

Commercial

Project Management

Contract Administration

Risk Management

Procurement

Claims Management

Document Control

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Chief Financial Officer

Finance Director

Quantity Surveyor

Commercial Manager

Operations Director

Project Director

Claims Manager

Risk Manager

Procurement Manager

Company Secretary

General Counsel

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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