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What is a Contractor's Final Payment Affidavit?

Updated November 1st 2022

4 min read

This affidavit can help get you paid at the end of a project.

What is a Contractor's Final Payment Affidavit?

What is a Contractor's Final Payment Affidavit?

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Trey Salm

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What Is A Contractor’s Final Payment Affidavit?

A "Contractor's Final Payment Affidavit " is a form used by contractors to state that the project has been finished and outlines how much the property owner still owes for materials or services. You may have also heard it called a "contractor's affidavit."

This form needs to be completed and sent to the property owner before seeking to enforce a lien. It is usually completed and signed (and notarized) by the general contractor or a subcontractor. It details how much each vendor and subcontractor is owed on a project.

When this form is signed and filed, it legally swears that all suppliers and contractors have been paid for their work on the project except the ones listed on the affidavit. This reassures the owner and financing company that all other vendors on the project have been paid in full.

In some states, the contractor's affidavit must be sent to the owner before filing a lien or a lawsuit for nonpayment. This lets the project owner know which parties are owed. In other states, it's an optional protection a contractor can take when working on a project. Banks or other financing organizations can also request a contractor's affidavit from the general contractor on a project before releasing their final payment. This helps the lender feel assured that they know who was on the project and who is owed money before releasing the final retention payment.

One important thing to remember about this form is that it only needs to be sent by those who have a direct contract (or privity) with the property owner. So, for example, if you are a subcontractor who has finished work and is looking to get paid, you will not have to use a "Contractor's Final Affidavit."

When Do I Need a Contractor's Final Affidavit?

As mentioned above, you will want to send a Contractor's Final Affidavit if you have a direct contract with the property owner, and when you request final payment. It varies state by state if this is legally required as part of the lien process, so it's always wise to check with your local court on their rules. If you are a contractor and you are required to send a Contactor’s final Affidavit to the owner, you will want to send it by the deadline set by the court and before you foreclose on your lien. If you do not send it within that period, you may lose your rights to file a lien.

The "best practice" for many contractors is to send out the affidavit whenever you send out your Claim of Lien. This can help ensure you have legal protection at the end of the project if your payment is not forthcoming.

How to Complete a Contractor's Final Payment Affidavit

  1. Identify and fill out the court's "Contractor's Final Payment Affidavit" form.
    1. Prepare to include: Your name and address, the name of the property owner, the amount owed in the final payment, and a statement saying that all work detailed in the contract has been completed in full and that all subcontractors under your employ have been paid in full as well.
  2. Notarize the document - You will have to sign and notarize the document with a legally registered notary.
  3. Serve the document - Each state varies on how you are legally allowed to serve the other party. But make sure to obtain a receipt that acknowledges the service was completed.

With our software, you can also generate one in minutes from your phone or computer.

If you have any further questions about a contractor's final payment affidavit, please don't hesitate to contact us.

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