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 North Carolina Contractor's Affidavit to Induce Lender to Release Funds — Final Payment is a legal document that serves as a crucial step in the construction payment process. It acts as a formal request from a contractor to a lender, motivating them to release the final payment owed to the contractor for completing a construction project. The affidavit contains essential information that ensures transparency and protects the rights of all parties involved in the construction project. Keywords: North Carolina, contractor's affidavit, induce lender, release funds, final payment, construction payment, legal document, construction project, transparency, rights, parties involved. Types of North Carolina Contractor's Affidavit to Induce Lender to Release Funds — Final Payment: 1. General Contractor's Affidavit: This type of affidavit is used when the general contractor, who is responsible for overseeing the entire construction project, requests the release of the final payment from the lender. 2. Subcontractor's Affidavit: In cases where subcontractors are involved in the construction project, they may need to submit a separate affidavit to induce the lender to release the funds owed to them for their specific part of the project. 3. Supplier's Affidavit: If suppliers have provided materials or goods for the construction project and are still awaiting payment, they can submit a supplier's affidavit to request the lender to release the final payment owed to them. 4. Material man's Affidavit: Similar to a supplier's affidavit, a material man's affidavit is used specifically by suppliers of construction materials, such as lumber, concrete, or steel, to induce the lender to release the outstanding payment for those materials. 5. Design Professional's Affidavit: In cases where architects, engineers, or other design professionals are involved in the construction project, they may need to submit a separate affidavit to request the final payment owed to them for their services rendered. 6. Conditional Final Affidavit: This type of affidavit is used when there are specific conditions that need to be met before the final payment can be released. It outlines the conditions and ensures that all parties are aware of the requirements before the funds are released. Remember, it is essential to consult with a legal professional or expert in construction law to ensure that the North Carolina Contractor's Affidavit to Induce Lender to Release Funds — Final Payment is completed accurately and in compliance with relevant state laws and regulations.
