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Glossary

Statutory Declaration (Construction) Defined

A statutory declaration in construction is a written statement sworn before a commissioner of oaths declaring that, as of a given date, you have paid your subcontractors, suppliers, and workers for work covered by previous payments. The standard forms are CCDC 9A (sworn by the contractor) and CCDC 9B (sworn by the subcontractor). Owners and general contractors commonly require one before releasing the second and subsequent progress draws and before releasing holdback, because it gives them evidence that money already paid flowed down the chain instead of leaving unpaid parties who could still lien the project.

Why it matters to Canadian contractors

  • On commercial and institutional jobs a missing declaration stops your draw. Knowing the requirement is coming, and keeping sub and supplier payments current, is the difference between a smooth draw and a stalled one.
  • Making a false statutory declaration is a criminal offence in Canada. Declaring that subs are paid when they are not is not paperwork theatre; it carries real legal exposure.
  • The declaration protects the payer against double payment: if an unpaid sub liens the project after the owner has paid the GC, the owner can end up paying twice. Your declaration is what they rely on.
  • Clean payment records per subcontractor, the same records that feed T5018 reporting, are what let you swear a declaration confidently instead of from memory.

Common mistakes and pitfalls

  • A statutory declaration is sworn as of a specific date and typically covers amounts due up to the previous draw, not the current one. Read which period the form actually covers before signing.
  • It must be sworn before a commissioner of oaths or notary to be valid. An unsworn signed form is not a statutory declaration.
  • Holdback amounts properly retained from subs are normally excluded from the declaration. Treating retained holdback as an unpaid debt misstates the form in the other direction.
  • If a payment dispute with a sub is genuine, say so to the payer rather than swearing a clean declaration. A qualified declaration is awkward; a false one is criminal.

Related

This glossary entry is for general information only and does not constitute legal or tax advice. Canadian tax and construction law rules vary by province and contract. For advice specific to your situation, consult a licensed professional.

Glossary: Statutory holdback→Glossary: Construction lien deadline→Glossary: Substantial performance→