Common use of ACCEPTANCE OF FINAL PAYMENT CONSTITUTES RELEASE Clause in Contracts

ACCEPTANCE OF FINAL PAYMENT CONSTITUTES RELEASE. A. The acceptance of final payment by the Contractor shall operate as a release to the Owner of all claims by the Contractor for all things done or furnished in connection with the Contract and for every act and neglect of the Owner, and others relating to or arising out of the Work under the Contract, except for claims previously made in writing and still unsettled. B. No payment, final or otherwise, shall operate to release the Contractor or his Surety from any obligations under the Contract or under the Performance Bond or Labor and Materials Payment Bond, including, but not necessarily limited to any one or more of the following: 1. Obligations arising from or relating to latent defects. 2. Faulty Work or material appearing after any payment. 3. Failure of the Work to perform efficiently in accordance with the requirements of the Contract Documents.