With most construction projects, the owner hires a general contractor. The general contractor then hires subcontractors to do the work. Finally, the subcontractors often engage lower sub-subcontractors and suppliers. This arrangement is known as as a construction pyramid. The owner and general contractor rarely have contracts with subcontractors or suppliers, so they rarely deal with these other parties. As such, the owner and the general contractor cannot determine if the downstream parties are being paid. Because unpaid parties can result in builders liens, statutory declarations are used to ensure payments get to the lower people of these construction pyramids. They are often sworn by contractors prior to payment as a condition for a second or subsequent progress payment, or for a release of holdback.
Brosgall Legal | Notary Services helps clients in the construction industry complete these statutory declarations. If you have any questions, or want to book an appointment to see a Commissioner of Oaths, please send us an email or call us at 604-685-ADAM .
The Purpose of a Statutory Declaration
Statutory declarations are sworn statements that are used so that contractors or subcontractors can be paid their progress draws or holdback releases. The signing party swears that its accounts for that particular job have been fully paid - up to and including the last progress draw. The statutory declaration assures the paying party that their funds are reaching those lower on the pyramid.
The Requirements for a Statutory Declaration
There are certain requirements for this Statutory Declaration. We can either prepare the Statutory Declaration on your behalf, or you can bring your unsigned Statutory Declaration to our office to be sworn. Either way, as a Commissioner of Oaths, Mr. Brosgall will ensure that you have read and fully understood the document. Then he will have you swear that the statements in the document are true.
For constructon Statutory Declarations, the typical information contained in the document is as follows:
- The name of the contractor
- The project name
- The property description (civic and legal)
- The owner's name
- The tenant's name
- Finally, the declaration that the accounts have all been paid in full as required by the construction contract. The wording often used can be found in the forms drafted by the Canadian Construction Documents Committee (CCDC 9A and 9B).
The procedural requirements for statutory declarations are as follows:
- The Deponent (you) must be physically present with the Commissioner of Oaths when signing.
- The Deponent must indicate that they have read and understood the statements contained in the document.
- The Deponent must orally state that they make the declaration conscientiously believing it to be true and knowing that it is of the same legal force and effect as if made under oath.
- The Commissioner of Oaths (us) must be satisfied regarding the Deponent's identity. This means you must bring proper government issued picture ID (such as a driver's licence, passport, etc.) when you visit our office.
When all these requirements are satisfied, both the Deponent, and the Commissioner of Oaths sign the Statutory Declaration, and our notary stamp and seal is applied to your document.
Vancouver Commissioner of Oaths, Notary Public, and Lawyer
As a Commissioner of Oaths, Notary Public and Lawyer, Mr. Brosgall is fully qualified, licenced and insured to swear Statutory Declarations for Progress Payment Distribution. If you have any questions, or want to book an appointment, please send us an email or call us at 604-685-ADAM . You may also visit our VancouverNotary.biz home page for further information. Same day service and walk-ins are always welcome.