The owner of a project must request an Affidavit of Payment before making the final payment or installment on a project. An Affidavit of Payment certifies that payment has been made for all claims and debts related to a project.
A Contractors Affidavit of Payment assures that all invoices, bills, and amounts incurred in the construction or repair during the project has been paid in full. The Affidavit of Payment assures there are no construction liens against the project and no claims for labor, services, or materials remaining unpaid.
An Affidavit of Payment assures that when any demand is made against an owner, the contractor of the project will bear sole responsibility for all costs and expenses incurred by the owner related to that demand. The costs and expenses incurred also include all costs and expenses of legal counsel retained by the owner.
A contractor submits an Affidavit of Payment with the final payment, stating that all employee payrolls, bills for materials, bills for equipment, and other debts connected with the work for which the owner is responsible has been paid.
The Affidavit of Payment requires a contractor to list any indebtedness or known claims in connection with the construction contract that have not been paid or otherwise satisfied. The contractor may also be required to furnish a lien bond or indemnity bond to protect the owner along with the Affidavit of Payment.
An Affidavit of Payment must be executed and sworn to by the contractor supervising the payments. The Affidavit of Payment must be submitted to the owner before the final payment is due under the terms of the contract and signed by a notary public.