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.
Nebraska Contractor's Affidavit to Induce Lender to Release Funds — Final Payment is a legal document used in the construction industry that ensures contractors receive their final payment from lenders upon completing a project. This affidavit serves as a guarantee for contractors that they will receive the remaining funds owed to them by the lender or financial institution involved. In the state of Nebraska, contractors may encounter different types of affidavits to induce lenders to release funds for the final payment. These can include: 1. General Contractors Affidavit: This particular affidavit is used by general contractors who oversee the entire construction project and subcontractor payments. It confirms that all subcontractors and suppliers involved have been paid in full and that there are no outstanding debts or liens associated with the project. It assures the lender that the general contractor has fulfilled all financial obligations and is eligible to receive the final payment. 2. Subcontractors Affidavit: Subcontractors involved in a construction project may be required to submit this affidavit to induce the lender to release final payment. It attests that the subcontractor has completed their work as per the contract and has been paid in full by the general contractor. It serves as proof that the subcontractor has no financial claims against the project and is entitled to receive the remaining funds. 3. Material Supplier Affidavit: For suppliers of construction materials, this affidavit is crucial to secure the final payment. It verifies that the supplier has provided the required materials as agreed upon and has been compensated in full by the general contractor. It assures the lender that all supply chain expenses have been settled, ensuring a smooth release of final payment. The Nebraska Contractor's Affidavit to Induce Lender to Release Funds — Final Payment acts as a safeguard for contractors, subcontractors, and material suppliers by mitigating any potential financial disputes and ensuring timely compensation for their services or materials. This legal document is integral in maintaining trust and transparency among all parties involved in a construction project.
