An Affidavit of Contractor is a statement filled out by the Contractor and turned in to the owner when final payment is due, when a progress payment is due, or when a Contractor fails to complete his work before it is completed. This affidavit typically includes verbiage that all Lienors have been paid, the amount of labor and materials due if certain lienors have not been paid, and the Contractor’s notarized signature. A Project Owner typically has the right to pay others directly to avoid lien liability if they remain unjustly unpaid: In this case the project owner, after giving the contractor notice (often 10 days), will pay the lower tiered subcontractors or material suppliers directly. If there happens to be insufficient funds remaining to pay all potential Lienors, then the Contractor will have to pay the difference to the project owner before the project owner pays lower tiered lienors. If the Contractor fails to provide the Property Owner with the deficient funds, the Property Owner can, after due notice, directly pay any unpaid Lienors on a pro-rata basis.

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