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.
A Puerto Rico Contractor's Affidavit to Induce Lender to Release Funds — Final Payment is a legal document that plays a crucial role in the construction industry by facilitating the final payment process between contractors, lenders, and property owners. This affidavit serves as a confirmation to the lender that the contractor has fulfilled all obligations and completed the project satisfactorily, enabling the release of the final payment to the contractor. Keywords: Puerto Rico, contractor's affidavit, induce lender, release funds, final payment. In Puerto Rico, there are typically two different types of Contractor's Affidavits used to induce lenders to release funds: 1. Puerto Rico Contractor's Affidavit to Induce Lender to Release Funds — Interim Payment: This affidavit is used during the construction process as contractors achieve specific milestones or complete predetermined phases of the project. It allows them to request partial payment for work performed, materials supplied, and expenses incurred, ensuring timely cash flow for the project's continuity. 2. Puerto Rico Contractor's Affidavit to Induce Lender to Release Funds — Final Payment: This specific type of affidavit is crucial in the final stages of the construction project. Contractors submit this document when they have completed all required work as per the contract, cleared any outstanding issues, and obtained necessary approvals from regulatory authorities and property owners. This affidavit helps contractors obtain the remaining payment owed to them, assisting in project wrap-up and ensuring contractual obligations are met. Within the Puerto Rico Contractor's Affidavit to Induce Lender to Release Funds — Final Payment, relevant information usually includes: 1. Contractor's Information: Full legal name, business address, contact details, and contractor's license number, demonstrating their eligibility for the project and compliance with local regulations. 2. Project Details: Comprehensive description of the construction project, including its location, specifications, scope, and any unique features that differentiate it from other projects. 3. Certification of Work Completion: Detailed confirmation that the contractor has completed all work according to the agreed-upon plans, specifications, and timeline, ensuring compliance with all applicable codes, regulations, and permits. 4. Outstanding Payments and Liens: Disclosure of any outstanding payments owed to subcontractors, suppliers, or other parties involved in the project. Additionally, the contractor must affirm that all liens related to the project have been satisfied or bonded. 5. Authorization to Release Funds: Statement requesting the lender to release the final payment owed to the contractor, acknowledging that all contractual requirements have been met to their satisfaction. 6. Agreement to Indemnify: A clause where the contractor agrees to indemnify and hold the lender harmless against any future claims, disputes, or liabilities arising from the project. 7. Signature and Notarization: The affidavit must be signed by the contractor, notarized, and dated to make it legally binding. By utilizing a Puerto Rico Contractor's Affidavit to Induce Lender to Release Funds — Final Payment, contractors in Puerto Rico can ensure smooth financial settlements for their completed construction projects, promoting accountability, fair payment practices, and overall industry transparency.
