When is the final payment due?

The final payment for a construction project is typically due upon final inspection and acceptance by the owner. This reflects the practice of ensuring that the work has been completed to the satisfaction of the owner and that it meets all contractual obligations and specifications. Final acceptance usually follows a thorough inspection where any remaining issues can be addressed and rectified by the contractor, ensuring that the project is fully completed before the final payment is made.

This approach protects the owner by ensuring that they are paying for completed work that meets their expectations and contractual agreements, thereby establishing a clear link between payment and performance. It also helps maintain good relations between the owner and contractor, as it incentivizes the contractor to finish the work to a high standard before receiving the final remuneration.

In contrast, other options such as tying final payment to project milestones or the contractor's requests do not necessarily guarantee that the project has been fully completed and accepted, and focusing on subcontractor payments does not directly relate to the owner's acceptance of the work done.