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.
Title: A Comprehensive Guide to South Dakota Contractor's Affidavit to Induce Lender to Release Funds — Final Payment Keywords: South Dakota, contractor's affidavit, induce lender, release funds, final payment Intro: The South Dakota Contractor's Affidavit to Induce Lender to Release Funds — Final Payment is a crucial legal document used in the construction industry. It plays a significant role in ensuring that contractors receive their rightful compensation for completed work. In this article, we will delve into the intricacies of this affidavit, its purpose, and explore any possible variations or types commonly used in South Dakota. I. Understanding the South Dakota Contractor's Affidavit: 1. Purpose and Importance: The contractor's affidavit serves as a legally binding statement submitted by a contractor to the lender, usually a financial institution or a private lender. It aims to induce the lender to release the final payment or remaining funds allocated for a construction project to the contractor. 2. Components of the Affidavit: The affidavit typically includes details such as the contractor's name, address, license number, a detailed description of the completed work, the total amount due, and any change orders or additional work performed. It may also require the contractor to declare the status of any outstanding payments to subcontractors or material suppliers. II. Types of South Dakota Contractor's Affidavit to Induce Lender to Release Funds — Final Payment: 1. Standard Contractor's Affidavit: This is the most commonly used type of affidavit and covers the essential elements mentioned above. It provides a comprehensive overview of the completed work, ensuring that all requirements are met for the lender to release the final payment. 2. Sworn Contractor's Affidavit: In certain cases, an affidavit may be required, where the contractor is required to swear or affirm the truthfulness of the provided information before a notary public or other authorized figure. This type of affidavit carries an added level of legal accountability. 3. Progress Payment Affidavit: While not specifically related to the final payment, a progress payment affidavit is worth mentioning. It enables contractors to request partial payments throughout the construction project, based on completed milestones. These affidavits help secure partial funds for ongoing work, maintaining financial stability for contractors while ensuring cross-verification with the lender. Conclusion: South Dakota Contractor's Affidavit to Induce Lender to Release Funds — Final Payment is a critical document that safeguards the interests of contractors in the construction industry. Understanding the purpose, components, and potential variations of this affidavit is crucial for contractors seeking fair compensation for their completed work. By adhering to the requirements outlined in the affidavit, contractors can strengthen their chances of obtaining final payment releases from lenders in South Dakota.
