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 New Mexico 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 means for contractors to assure the lenders that all necessary payments have been made and all obligations fulfilled in order to receive the final payment. This affidavit acts as a declaration made by the contractor to the lender, asserting that they have paid all subcontractors, suppliers, and laborers involved in the project. It demonstrates that there are no outstanding debts or pending disputes that could adversely affect the contractor's entitlement to the final payment. It is important to note that there are different types of New Mexico Contractor's Affidavit to Induce Lender to Release Funds — Final Payment, categorized based on specific project requirements or circumstances. Some of these include: 1. Standard New Mexico Contractor's Affidavit: This is the most common type of affidavit used for construction projects in New Mexico. It ensures that the contractor has fulfilled all financial obligations, completed the project as agreed upon, and has obtained lien waivers from subcontractors and material suppliers. 2. Conditional New Mexico Contractor's Affidavit: This affidavit is used when there are unresolved issues or outstanding payments related to the project. It allows the contractor to claim the final payment while reserving certain funds for resolving these outstanding matters. 3. Supplementary New Mexico Contractor's Affidavit: In some cases, additional information or documentation may be required by the lender to release funds. A supplementary affidavit may be used to provide any missing details or clarifications required by the lender. 4. Single-Project New Mexico Contractor's Affidavit: This affidavit is specific to a particular construction project and covers all aspects of the project, including financial obligations and completion of work. It is tailored to address the unique requirements and specifications of the project. Overall, the New Mexico Contractor's Affidavit to Induce Lender to Release Funds — Final Payment serves as a critical document in the construction industry. It ensures transparency, protects the interests of all parties involved, and facilitates the smooth and timely release of the final payment to the contractor.
