Interested in hearing how other GC's handle sub-contractor affidavits and sub-sub waivers. Our current process is time consuming and causing issues with some of our sub-contractors.
Attached is a copy of the affidavit we require with each sub-contractor application. The front office is requiring subs to list every dollar owed to sub-subs or vendors. Here are two recent examples:
Example 1: Front office will require a painting sub-contractor to list Sherwin-Williams. Contract to painting sub is $10,000 and the front office will hold payment until they receive a waiver from Sherwin-Williams for $500.
Example 2: Steel sub-contractor has a $1,000,000 contract. With the 1st invoice the sub will submit an affidavit listing the amount owed to their steel vendor, amount owed for steel is $600,000. The sub-contractor will submit application #1 for $300,000 steel deposit. As the GC the client is invoiced, and payment is received for the steel deposit. At that point the front office will hold payment or inform the steel sub-contractor that they will need to pay for the steel direct. The reason the front office provides to the sub-contractor is that they have not paid the steel vendor in full. This example is odd because the steel sub-contractor is submitting an application for the steel deposit in order to pay the steel vendor. By the front office refusing to issue payment the steel sub-contractor cannot pay for the steel deposit.
Trying to understand how other GC's handle this process to ensure sub-subs and vendors are being paid throughout projects. If anyone can provide an example of the affidavit that their company uses that would be great.
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Rich Schultz
Project Accountant
A&E Construction Inc.
rschultz@aeconstruction.comHavertown, PA
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