Demand for Affidavit of Payment of Subcontractors, Materialmen, etc by Original Contractor - Corporation or LLC - Texas 2025

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The subcontractor could then sell the property and take the money they are owed from the proceeds of the sale. Under Texas Property Code 53-153, a general contractor is required to indemnify and defend the property owner and will be required in most cases to pay the subcontractor what is owed to discharge the lien.
A contractors affidavit provides reassurance to the project owner that all contractors and vendors on the project have been paid for the work they provided. By signing the form, the contractor swears that payment has been made to everyone working on the project, except those listed on the affidavit.
On private projects in Texas, the property owner must make payment to the prime contractor within 35 days of invoice receipt. Once the prime contractor receives payment from the property owner, they must pay their subs and suppliers within 7 days.
Every subcontractor is entitled to receive payments on time. If any wage is unpaid, the professional has the right to file a lien against the property owner. Other terms include a suppliers lien if materials are supplied, a laborers lien and a design professionals lien.
The contractors affidavit serves as a legally binding document. It confirms that contractors adhere to state and local laws, minimizing the risk of legal disputes. When signed and notarized, it provides proof of the contractors completion of the work.
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The affidavit includes details of the work performed, the materials supplied, and the corresponding payment received. Upon receiving the Affidavit of Payment, the project owner or the general contractor reviews the document for accuracy and completeness. If everything is in order, the payment is processed ingly.
The Texas Prompt Payment Act ing to the Act, a contractor must pay their subcontractors within seven days of receiving payment from the owner or client. If payment is delayed beyond this period, the contractor may be liable for interest on the unpaid balance.
A payment clause that obligates the Contractor to pay the subcontractor for satisfactory performance under its subcontract not later than 7 days from receipt of payment out of such amounts as are paid to the Contractor under this contract.

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