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Revaluation of liabilities

I have a decent idea of revaluing assets, I would like to understand how to revalue liabilities

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The context is an entity that owes payments to a contractor. Now the contractor and management have agreed to lucrative rates on a new and better funded project which is to be run as a separate legal entity. The precondition for this is that the contractor waive part of payments due to them from the current project/entity. Since this condition is being met, the challenge is how to adjust the value of the corresponding liabilities. 

The contractors are paid in two installments (at the start and end of the project). However, the payables are accrued monthly - hence the outstanding liability. 

Any tips would be appreciated. 

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