Deed of release template wording: the carve-out to send before you sign

A deed of release is not a receipt. It is a document that ends your right to be paid for anything not already paid: the variation still being argued, the delay costs notified in month three, the retention not yet released. Builders commonly make final payment conditional on one, and most are written to release everything, known and unknown. This template does not refuse the deed. It narrows it, so what you sign matches what you are actually being paid for.

When to use it

The builder sends a deed of release, deed of settlement or 'final payment certificate and release' with your final payment
Your contract makes a signed release a condition of final payment or of retention coming back
You still have anything open: unapproved variations, delay or disruption costs, disputed back charges, retention, or a payment claim under the Act

In the Word and PDF: The reply email to send with the marked-up deed; The carve-out clause and the Schedule A of excluded claims. Every [placeholder] is highlighted so nothing gets missed.

Where is the work? (sets the Act referenced in the template)

Subject: [Project name]: deed of release and excluded claims

Hi [contract administrator],

Thanks for sending the deed of release with the final payment for [subcontract title / number].

We are happy to sign a release for the amounts being paid. As drafted, the deed also releases claims that are still open between us, so we have marked it up as follows before signing.

1. Add to the release clause:
"This release does not apply to the Excluded Claims listed in Schedule A, to retention or other security not yet returned, to any amount certified or scheduled but unpaid at the date of this deed, or to any right that cannot be released under Building Industry Fairness (Security of Payment) Act 2017 (QLD)."

2. Schedule A (Excluded Claims):
(a) Variation [number / description], $[amount], notified [date]
(b) Extension of time and delay costs notified [date], $[amount or "to be assessed"]
(c) Back charge [description] disputed in our email of [date], $[amount]
(d) Retention of $[amount], due for release on [trigger and date]
(e) [any other open item]

3. The release to be mutual for the released matters, so that it applies to claims by [head contractor] against us for the same period, other than defects notified during the defects liability period.

If you would prefer to resolve the Schedule A items first, we are equally happy to sign the deed unamended once they are agreed and paid.

Please confirm and send through the revised deed for signing. In the meantime, the undisputed amount of $[amount] remains payable under the contract and Building Industry Fairness (Security of Payment) Act 2017 (QLD).

Regards,
[name]
[company, ABN]
[phone]

Download Word (.docx)Download PDF

Free to use and adapt. Replace every [bracketed placeholder] and verify the Act section and notice period for your state before sending.

Template, not legal advice. Your contract's clauses and your state's Act govern. Check both (especially clause numbers, notice periods and service requirements) before this goes out on a real dispute.

Using it well

Read the release when you sign the subcontract, not when you need the money

The form of release is often attached to the subcontract as a schedule. The cheapest time to change it is before signature. At final claim, the builder holds your money and you are negotiating against your own cash flow.

List every open item, even small ones

A release of 'all claims known or unknown' captures anything not written into the carve-out. Go back through your variation register, notices and claim history before you reply. If it is not in Schedule A, assume it is gone.

Undisputed money is not a bargaining chip

An amount the builder has already certified or scheduled is payable under the contract and the Act whether or not you sign anything. The deed is the price of closing out the disputed items, not of receiving what is already owed.

The template protects the claim. The contract decides it.

Your notice windows, the clause numbers and whether the bar is absolute all live in your subcontract. The free scanner reads them in about two minutes, benchmarked against real Australian subcontracts.

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Common questions

Do I have to sign a deed of release to get my final payment?

Only if your contract makes it a condition, and even then the release should match what is being paid. You can sign a release limited to the amounts paid and carve out everything still open. A builder who insists on a full release is asking you to settle the open items at zero.

Can a deed of release take away my rights under the Security of Payment Act?

The Acts contain provisions that void attempts to contract out of them, but a deed settling a genuine dispute can still end the underlying claim. Do not rely on the Act to rescue a release you signed. Name the Act and your open claims in the carve-out so the question never arises.

What is the difference between a deed of release and a statutory declaration?

A statutory declaration is a sworn statement of fact, typically that you have paid your workers and suppliers. A deed of release surrenders legal claims. Builders often send both together with the final payment, and the deed is the one that costs money if signed unread.

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General information and a starting-point template, not legal advice. Contracts and state Acts differ and change. Verify clause numbers, statutory sections, notice periods and service requirements before use, and get advice on a live dispute. Nothing on this page is uploaded or stored. Built by Mat Kennedy at The Construction Contracts Co.