Source: https://www.quantsurv.com/resources/glossary/full-and-final-settlement
Content format: Markdown version of the public page.
Content reviewed: 2026-09-30

# Full and final settlement: definition and example

An agreement settling the claims within its stated scope, often in return for an agreed payment.

By [Jack Butler-Kettle](<https://www.quantsurv.com/about#who-we-are>) · Updated 30 September 2026

Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.

## What it means in practice

A settlement closes the claims described by the agreement. Its scope may be wider than the particular invoice being discussed and can include future or unknown issues if the wording provides for that. Payment timing, release conditions and exclusions need as much attention as the settlement figure.

Check what is being given up before agreeing. [Final account recovery](<https://www.quantsurv.com/final-accounts/services/final-account-recovery>) can help reconcile the commercial account, with legal review where release wording requires it.

## Worked example

### The facts

A subcontractor considers £18,000 to settle a disputed £20,000 balance.

### What happens

1.  It checks whether the proposed release covers only the listed account items or other claims too.
    
2.  It records the payment deadline and any express reservations in the agreement.
    

### What this shows

The £2,000 compromise is only one part of the decision; the claims being released also matter.