Declarations for Progress Payments and Release of Holdback Funds

November 17th, 2016

Construction Site

Progress Payment Declarations

It is a common requirement for Contractors and Subcontractors to provide an affidavit or declaration that they have paid their suppliers of labor, services, equipment, and materials prior to receiving progress payments and holdback funds under a contract. This is an assurance to the other party that no liens will be applied to the property due to non-payment.

These documents, regardless of their format, must usually be sworn, affirmed, or declared before a Commissioner of Oaths in the relevant jurisdiction. As it is an offense to make a false statement in such documents, the owner, developer, or property manager relies upon these documents when releasing funds.

The Declarations must usually be made by someone with the authority to bind the contractor or subcontractor concerned and with knowledge of the payments to suppliers. Generally, this will be an officer or director of the corporation, owner of the business, or Project Manager. Such a person must personally appear before the Commissioner of Oaths – it cannot be signed ahead of time and sent with someone else.

The Canadian Construction Documents Committee (CCDC) has standard forms for these purposes, widely used in the industry. These forms are available for download for free on their website. Please note however that these forms are copyrighted, and CCDC requires you to purchase a seal from them at a nominal fee to use the form.

CCDC form contractors
CCDC form subcontractors

Many contractors have a Commissioner of Oaths on staff for just such purposes. However, because their work usually involves a lot of travel, it is not always convenient for contractors to access this staff member when payment becomes due.

Fortunately, Red Seal Notary has a large number of locations. Chances are we have one near you, or near your next destination. Why wait to get paid? Give us a call, or book an appointment online. We also have several Walk-in locations for extra convenience. Time is money – so why go all the way back to your office? Come to ours instead!

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