At the time the original contractor requests payment from the owner or Bank for the construction of improvements under a residential construction contract, the original contractor must provide to the owner a draw request disbursement statement. [TPC § 53.256] The statement may include any information agreed to by the owner and the original contractor but must include at least the name and address of each person who subcontracted directly with the original contractor and who the original contractor intends to pay from the requested funds. The original contractor must provide the disbursement statement in the manner agreed to in writing by the owner and original contractor.
The form of Residential Contractor Payment Disclosure located at the end of this Chapter is an example of a disbursement schedule.
Unless another method is provided for by agreement, the disclosure may be provided by depositing the statement in the United States mail, first class, postage paid, and properly addressed to the owner or by hand delivering the statement to the owner before the original contractor receives the requested funds.
If the owner finances the construction of improvements through a Bank that advances loan proceeds directly to the original contractor, the Bank must obtain from the original contractor the signed disbursement statement that covers the funds for which the original contractor is requesting payment; and provide to the owner a statement of funds disbursed by the Bank since the last statement was provided to the owner.
The Bank must provide to the owner the Bank’s disbursement statement and the disbursement statement the Bank obtained from the contractor before the Bank disburses the funds to the original contractor. See Form of Bank Disbursement Disclosure located at the end of this Chapter. The disbursement statements may be provided in any manner agreed to by the Bank and the owner.
The Bank is not responsible for the accuracy of the information contained in the disbursement statement obtained from the original contractor.