AIA G706 Contractor's Affidavit of Payment of Debts & Claims

Please Note: This listing is for a physical, hard-copy contract document shipped directly to you—not a digital download.

G706™ - 1994 Contractor's Affidavit of Payment of Debts and Claims – The Final Clearance for Project Close-Out

Protect your project from lingering liabilities with the AIA G706™ - 1994 Contractor's Affidavit of Payment of Debts and Claims. This essential physical contract document serves as the contractor's sworn statement submitted with the final request for payment, acknowledging that all payrolls, bills for materials and equipment, and other indebtedness connected with the work have been paid or otherwise satisfied. G706 provides owners with the assurance they need before releasing final disbursement, mitigating the risk of mechanic's liens or other claims that could encumber the property.

When to Use:
Use G706 when an owner requires the contractor to acknowledge that all debts, claims, and liens related to the construction contract have been paid or will be satisfied from the final payment before releasing the final disbursement. It is an essential component of the project close-out process for any construction project.

What It Does:
G706 requires the contractor to list any outstanding indebtedness or known claims in connection with the construction contract that have not been paid or otherwise satisfied. This serves as a formal sworn accounting by the contractor before the final disbursement is released. The form provides:

• A sworn affidavit that all payrolls, material bills, and other debts connected with the work have been paid

• A listing of any exceptions—indebtedness or claims that remain unsatisfied

• A mechanism for the contractor to furnish a lien bond or indemnity bond to protect the owner with respect to each exception, if required

Key Features & Legal Protections:

• Sworn Statement: Provides a formal, legally binding acknowledgment from the contractor regarding payment of debts.

• Lien Protection: Helps protect owners from mechanic's liens or other claims that could encumber the property after final payment.

• Exception Transparency: Requires contractors to list any outstanding obligations, ensuring full disclosure.

• Bonding Option: Allows for lien bonds or indemnity bonds to protect the owner for any exceptions.

Please Note: This listing is for a physical, hard-copy contract document shipped directly to you—not a digital download.