Industry Resource — Understanding the Statutory Declaration
A Sworn Promise. A Protected Project.
What a Statutory Declaration is, why it carries real legal weight, and why every construction project should require one.
⚖️Sworn legal statement
🔒Reduces lien risk
🏗️Industry standard
What Is It?
A Legal Oath — Not Just a Form
A Statutory Declaration (Stat Dec) is a sworn legal statement made before a Commissioner of Oaths or Notary Public. In construction, it confirms one specific thing: that a contractor or subcontractor has paid the people they are legally obligated to pay before receiving their next payment.
This is not a formality. It is not administrative paperwork. It is a sworn oath under Canadian law.
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“Before I receive payment, I swear under oath that I have paid everyone below me who is owed money on this project.”
Submitting a false Statutory Declaration is a criminal offence under the Canada Evidence Act. The consequences are serious — and that’s precisely why it works.
Why the oath matters
When someone signs a Stat Dec, they are making a legally binding declaration — not checking a box. The criminal consequence for a false declaration is what gives this document its teeth and makes it worth requiring on every project.
Why It Matters
The Problem It Solves
Money moves down the construction chain — from Owner to Prime Contractor, to Subcontractors, to suppliers and workers. At each level, the law requires that funds received on a project are held in trust for the people below. They are not the contractor’s money to keep.
The risk? A contractor could receive payment from above while still holding funds they owe to others further down the chain. If that money hasn’t flowed down as required, the project is exposed — those unpaid parties have the right to place a lien on the project, creating serious problems for ownership, financing, and completion.
A Stat Dec closes that gap. Before payment moves further up the chain, the party receiving it must swear they’ve taken care of their obligations to everyone below them.
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Protects the Trust
Confirms that funds held in trust by law have reached the people they were intended for.
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Reduces Lien Exposure
Unpaid parties can lien a project. Stat Decs confirm obligations are met — eliminating that risk.
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Secures Financing
Owners and lenders need assurance that payments today won’t create legal problems tomorrow.
How It Works
The Construction Payment Pyramid
Every project operates through a layered payment structure. A Stat Dec is the mechanism that keeps each layer accountable before funds move further along the chain.
🏛️ OwnerReleases payment to Prime Contractor
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🏗️ Prime ContractorStat Dec required — confirms all subs are paid
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🔧 Subcontractors & SuppliersStat Dec required — confirms workers & suppliers are paid
Each tier must confirm obligations to those below are met — before receiving payment from above.
This structure creates a security blanket for the project’s financing. The sworn declaration at each stage keeps funds moving properly through the chain and protects everyone from the legal exposure of an unpaid lien claim.
The Legal Backdrop
Grounded in The Builders’ Lien Act
The obligation to use Stat Decs typically flows from your contract — but the legal framework behind why they matter is The Builders’ Lien Act. The Act establishes three interlocking protections that Stat Decs are built to support:
Trust
Funds Are Held in Trust
Money received on a project must be held in trust for those below you. A Stat Dec confirms those trust obligations are met.
Holdback
Holdback Protects Against Claims
A legislated percentage of each payment is retained against unpaid claims. A Stat Dec is typically required before holdback is released.
Lien
Unpaid Parties Can Lien
If someone is owed money and hasn’t been paid, they can register a lien against the project. Stat Decs reduce this risk by requiring sworn confirmation of payment.
Trust → Holdback → Lien. These three provisions are interconnected — and the Stat Dec sits at the centre of all three. It is the practical tool that confirms compliance with each layer of the Act’s protections. For project-specific legal questions, always consult a qualified construction lawyer.
The Standard Form
Prescribe the CCDC 9 in Your Contracts
The CCDC 9 is the Canadian industry standard for a reason: it’s standardized, free, and eliminates the confusion that comes with custom or informal formats. Prescribing it in your contracts removes all ambiguity before a project even starts.
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CCDC 9 — Statutory Declaration
The recognized standard form across Canada. Specify it in your subcontracts and there’s no debate about format or acceptability.
Don’t forget the seal. A Stat Dec without an official copyright seal is not valid. It’s what separates a binding oath from an unsigned piece of paper. Seals cost less than $5.
The Association’s role is to remove friction — not add it. Stat Decs should be fast, standard, and accessible. That’s exactly what we support for our members.
✅ Available to All Members
→Free access to CCDC 9 and all standard CCDC documents
→Commissioner of Oaths & Notary Public services at no cost
→CCDC copyright seals at all CASK locations province-wide
→Guidance on contract compliance and payment administration
→Education on why these tools exist — not just how to fill them out
Now that you know why Stat Decs matter, our step-by-step guide walks you through exactly how to complete one correctly — from choosing the right form to getting it signed.
This resource is provided by the Construction Association of Saskatchewan (CASK) for general informational and educational purposes only. It is intended to help members understand the role of Statutory Declarations in construction practice and is not a substitute for qualified legal advice.
The application of The Builders’ Lien Act, contract requirements, and payment obligations will vary depending on your specific contracts, project circumstances, and jurisdiction. We strongly encourage members to consult a qualified construction lawyer for guidance on their specific situation.
For questions about accessing CCDC documents, seals, or Commissioner of Oaths services, contact your nearest CASK office or reach out at webuildsk@constructionsk.ca.