When the contractor requests final payment, a Final Contractor's Affidavit must be submitted to the lender. The Final Contractor's Affidavit lists all money due to potential lienors that have not been paid. The lender will typically require affidavits from each potential lienor assuring that they have been paid before releasing the final draw amount to the contractor.
The District of Columbia Contractor's Affidavit to Induce Lender to Release Funds — Final Payment is a crucial legal document that plays a significant role in the construction industry. This affidavit serves as a formal declaration made by a contractor to convince the lender to release the final payment for a construction project. It provides assurance to the lender that all necessary conditions have been met, preventing any disputes or discrepancies that may arise in the payment process. In the District of Columbia, there are two main types of Contractor's Affidavit to Induce Lender to Release Funds — Final Payment: 1. Standard District of Columbia Contractor's Affidavit: This type of affidavit is used in most construction projects, ensuring that the contractor has completed all work outlined in the contract, including any necessary modifications or changes. The affidavit also affirms that the contractor has paid all employees, subcontractors, and material suppliers, in accordance with the laws and regulations of the District of Columbia. By submitting this affidavit, the contractor seeks to induce the lender to release the final payment. 2. District of Columbia Affidavit of Final Completion: This affidavit is utilized when the construction project has reached its final stage, indicating that all work has been successfully completed per the contract specifications, plans, and permits. The affidavit states that there are no defects or outstanding issues remaining that could hinder the project's completion. It also confirms that the contractor has cleared all outstanding payments to subcontractors, suppliers, and workers, guaranteeing the lender that all financial obligations have been met and there are no liens against the property. Keywords: District of Columbia, Contractor's Affidavit, Induce Lender, Release Funds, Final Payment, construction industry, legal document, formal declaration, assurance, disputes, discrepancies, payment process, construction project, standard affidavit, final completion, contract specifications, permits, defects, outstanding issues, liens, subcontractors, suppliers, workers.
