FAQ.30

Question:

Am I within my rights to demand a statutory declaration from my contractor to prove that he has paid all the sub trades and suppliers in full? My contractor suggests that he will charge me a fee of $200 for this service and only once payment of the entire project is paid in full.

Answer:

The answer to the question depends entirely on the specifics of the construction contract. For example, the standard CCDC 2 construction contract used across Canada only requires that the contractor provide a statutory declaration in conjunction with an application for release of the basic 10% holdback, mandatory under the Construction Act, following substantial performance. Some contracts include the requirement to submit a statutory declaration with every application for payment other than the first. This is done to protect both the owner and to a lesser extent, the consultant.

If the contract does not contain wording which requires statutory declarations with any other applications for payment, then the contractor should be entitled to recover their costs if asked to provide them.