- 5.1 AIA G706
- 5.2 Final payment affidavit for Florida
What is a contractors affidavit?
A contractors affidavit, also known as a contractor’s final payment affidavit, is a document that outlines the vendors or subcontractors who still have outstanding payments on a project. It is completed and signed by the general contractor or subcontractor, notarized, and includes a detailed list of vendors or subcontractors along with the amount owed to each of them.
By signing the affidavit, the contractor declares that all suppliers and contractors, except those mentioned in the document, have been paid in full for their contributions to the project. This provides reassurance to the project owner and financing company that all other vendors involved have received their rightful payments.
In certain states, it is mandatory to submit the contractor’s affidavit to the project owner before initiating a lien or filing a lawsuit for nonpayment. This ensures that the owner is aware of the parties who are still owed money.
Additionally, banks or financing companies may request a contractor’s affidavit from the general contractor before releasing the final payment. This is done to ensure that they have a clear understanding of all project participants and outstanding payment obligations before releasing the final retention payment.
When is an affidavit required?
An affidavit from a contractor may be required in certain situations. For instance, in some states, an affidavit must be submitted prior to filing a lien or a lawsuit for nonpayment. For example, in Florida, an affidavit must be sent to the owner five days before filing a lien or lawsuit, giving them time to make the outstanding payment before any legal action is taken.
See also What is the The Future of Construction ManagementContractors may also be required to submit an affidavit either before or after receiving the final payment. In Tennessee, contractors must submit an affidavit to the owner upon receipt of the final payment. This informs the owner of any unpaid amounts owed to subcontractors or vendors involved in the project.
Furthermore, banks and financing companies may request a final contractors affidavit when closing out the loan on a project. The general contractor is typically responsible for completing the affidavit and returning it to the bank to be included in the loan documents.
Contractors sworn statement vs an affidavit: What’s the difference?
What is the difference between a contractor’s sworn statement and an affidavit?
A contractor’s sworn statement and an affidavit provide similar information, but there are some key distinctions. A contractor’s sworn statement is typically submitted regularly throughout the project, often accompanying each invoice, usually on a monthly basis.
It tracks the amounts owed and paid to subcontractors and vendors as the project progresses. The sworn statement includes details such as the contract amount for each subcontractor or vendor, the total amount billed to date, the total amount paid to date, and the remaining balance on the contract. Its purpose is to assure the owner and financing company that progress payments are being made accurately.
On the other hand, a contractor’s affidavit is a document that simply states the amount owed to Contractors Affidavit and suppliers at the conclusion of the project. It provides a summary of the outstanding payments without the detailed tracking of progress payments seen in a sworn statement.
Content in a contractors affidavit
Here are the key elements to include in a contractors affidavit, according to construction attorney Robert Murillo:
1. Contractor Information: Include the full name of the contractor or the title of the person signing on behalf of the entity, along with any trade name mentioned in the contract.
2. Owner Information: Insert the full name of the owner or owners, or the title of the person executing on behalf of the owner entity, including any trade name.
See also 4 Construction Contract Clauses Putting You at Risk3. Property Address: Provide the real property address related to the project.
4. Payment Amount: Specify the amount of payment being addressed in the affidavit. Note that for final payments, certain states may have specific requirements, so it’s essential to check your state’s laws.
5. Notary Clause: Update the notary clause as per the requirements of your state. The provided sample affidavit pertains to Colorado law, so ensure to review and modify the notary clause accordingly. Remember not to sign the affidavit until you are in the presence of a notary.
It’s important to adapt these elements to comply with the specific laws and regulations of your state.
Affidavit templates and examples
Understanding the significance of affidavits in various contexts is crucial. It’s worth mentioning that specific states mandate a contractors affidavit, specifying a particular form for validity. Ensure compliance with the rules and regulations of the city and state where you operate, as adherence to a designated form may be necessary.
Accessing affidavit templates and examples can provide valuable insights into the proper format and content required, facilitating accurate and lawful documentation in your specific jurisdiction.
Access a Sample Contractors Affidavit
Utilize this versatile general contractors affidavit form applicable to a wide range of projects, thoughtfully crafted by construction attorney Robert Murillo. Simplify your documentation processes by incorporating this comprehensive sample affidavit into your project management procedures.
It’s important to note that, to ensure compliance, you should review and customize the form based on the specific requirements and regulations governing your project and location. Adapt the affidavit to align with the legal standards applicable to your construction initiatives.
AIA G706
The American Institute of Architects provides a useful form for contractors, known as the G706 Contractor’s Affidavit of Payment of Debts and Claims. This document attests that full payment has been made for all provided materials, equipment, labor, and services, and affirms the absence of any known claims except those explicitly listed on the affidavit.
In certain cases, the owner or bank may request additional supporting documents, such as lien waivers, the AIA G707 Consent of Surety to Final Payment, or the G706A Contractor’s Affidavit of Release of Liens.
See also Can Accounting and Project Management Play Nice?Final payment affidavit for Florida
In Florida, a specific form is mandated for the final contractor’s affidavit, and it must be submitted to the project owner at least five days before initiating a lien filing or lawsuit. Furthermore, before making the final payment, the owner is obligated to obtain an affidavit from the general contractor.
Adhering to these state-specific regulations ensures proper documentation and compliance in the final payment process for construction projects in Florida.
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Contractor affidavits serve as a protective measure for project owners
Sworn affidavits by Contractors Affidavit play a crucial role in safeguarding both project owners and financing entities, providing assurance that all project-related debts have been settled. It’s imperative for contractors to exercise caution when signing these legal documents, as any falsification can lead to criminal charges and legal consequences. In certain states, these affidavits must be submitted to project owners prior to pursuing a lien or lawsuit for nonpayment, underscoring the significance of adhering to specific state regulations and processes.
