What rights do contractors waive when accepting final payment?

When contractors accept final payment, they typically waive their right to claim additional costs in the future related to the work performed under that contract. This is a standard practice in construction law and contract management, as accepting final payment signals that the contractor is satisfied with the work completed and that all obligations under the contract have been fulfilled. Essentially, it concludes the financial relationship regarding that particular project, meaning the contractor cannot come back later and request more money for issues they did not address before accepting payment.

This waiver helps provide closure to the project for both parties and assures the owner that there will be no further financial claims after final payment is made. It is important for contractors to be aware of this relinquishment to ensure they address all concerns and potential cost claims before reaching that point.