Sworn Statement for Contractor Template

In plain language: Identifies the contractor, project owner, property address, project name, and the specific draw or payment period the statement covers.

Common mistake: Using a trade name instead of the contractor's full registered legal entity name — mismatched names between the sworn statement and the construction contract create title and lender processing delays.

In plain language: A complete list of every subcontractor and supplier engaged on the project, showing their contract amount, total paid to date, the amount included in the current draw, and the remaining balance.

Common mistake: Omitting lower-tier subcontractors or small material suppliers. Any party with unpaid amounts retains lien rights regardless of whether they appear on the schedule.

In plain language: The contractor's affirmative statement that all prior draw payments have been distributed to subcontractors and suppliers as previously sworn, and that the current draw proceeds will be applied to the amounts listed in the schedule.

Common mistake: Confirming prior disbursements without actually verifying subcontractor receipts — if a dispute arises later, a false confirmation exposes the contractor to fraud liability, not just breach.

In plain language: States that the contractor has obtained, or will obtain upon payment, executed lien waivers from each subcontractor and supplier listed on the schedule.

Common mistake: Stating that waivers 'have been obtained' before they are actually signed and in hand — an owner or lender who relies on this and later faces a lien claim will hold the contractor liable for the misrepresentation.

In plain language: The contractor's sworn representation that no mechanic's liens have been filed against the property and that, to the best of their knowledge, no unpaid claims exist that could give rise to a lien.

Common mistake: Signing this clause without confirming through a title search or direct inquiry with each subcontractor — 'to the best of knowledge' is not a shield if the contractor deliberately avoided learning of a known dispute.

In plain language: Broad representations covering the accuracy of all information in the statement, the contractor's authority to sign, and the absence of undisclosed claims, back-charges, or disputes with any party on the project.

Common mistake: Signing a broad warranty without disclosing a known subcontractor dispute — courts treat non-disclosure of a known material fact as fraudulent misrepresentation, voiding any indemnity protection.

In plain language: The contractor agrees to indemnify and hold harmless the owner and lender from any losses, costs, or damages arising from a lien or claim filed in contradiction of the sworn statement.

Common mistake: No cap on indemnification exposure — without a limit tied to the contract value or draw amount, a single disputed sub-tier claim can expose the contractor to unlimited defense costs.

In plain language: The formal sworn declaration by the contractor's authorized representative that the contents of the statement are true, made under penalty of perjury.

Common mistake: Having an unauthorized employee sign instead of an officer with authority to bind the entity — if the signer lacks authority, the document may be voidable and the oath unenforceable.

In plain language: The notary's certification that the signatory appeared in person, was identified, and executed the document under oath before the notary on the stated date.

Common mistake: Using an expired notary commission or omitting the notary's commission expiration date — both can render the notarization defective and require the document to be re-executed.

In plain language: States the jurisdiction whose laws govern the statement and expressly acknowledges that the owner and lender are relying on the sworn statement in releasing funds.

Common mistake: Choosing a governing-law state that differs from the project location — mechanic's lien rights are governed by the state where the property sits, regardless of what the contract says.

A sworn statement for a contractor is a notarized legal declaration in which a general contractor attests under oath to the payment status of all subcontractors, suppliers, and materialmen on a construction project. It is submitted to a project owner or construction lender as a condition of releasing a draw payment or final disbursement. Because it is made under penalty of perjury, it carries greater legal weight than an ordinary certification or cover letter.

It is typically required by construction lenders before each draw disbursement, by project owners before releasing progress or final payments, and by title companies before issuing a clean title at project closeout. Several US states — including Illinois, Michigan, and Minnesota — have statutes that specifically govern the form and use of contractor sworn statements. Even where not legally mandated, most commercial construction contracts require one as a condition of payment.

Yes. The document's legal value — and the perjury exposure that backs it — depends entirely on the sworn oath administered by a notary public. Without notarization, it is an ordinary certification with no greater weight than any other letter. Most lenders and title companies will not accept an unnotarized version. Remote online notarization is accepted in most US states, but confirm acceptance with the receiving party before using it.

A sworn statement is a comprehensive declaration by the general contractor covering the payment status of all parties on the project. A lien waiver is a document signed by an individual subcontractor or supplier waiving their specific lien rights, typically in exchange for a payment. A sworn statement typically references and attaches lien waivers from each listed party as supporting exhibits. The two work together: the sworn statement is the contractor's certification; the lien waivers are the individual releases.

Submitting a materially false sworn statement exposes the contractor to multiple simultaneous consequences: criminal perjury charges, civil fraud liability to the owner and lender, loss of contractor's license in many states, personal liability piercing corporate protections, and immediate breach of the construction contract. Courts have held that a false sworn statement voids the contractor's right to retain any payments received on the basis of that statement.

Yes, if they have not actually been paid the amounts stated. Being listed on a sworn statement does not waive a subcontractor's lien rights — only a properly executed lien waiver does that. If the contractor certifies payment of an amount that is never actually disbursed to the subcontractor, that subcontractor retains full lien rights against the property and may also have a fraud claim against the contractor personally.

Schedule A should list every subcontractor, sub-tier subcontractor, and materialman engaged on the project, regardless of the amount owed. For each, include the company name, trade or scope, original contract amount, total paid through the previous draw, amount included in the current draw, and remaining contract balance. Omitting any party — even a small supplier — leaves an open lien risk that a sworn statement cannot address.

No. A contractor's sworn statement is executed by the general contractor to certify payment status of subs and suppliers. An owner's affidavit is executed by the property owner — typically at closing — to certify that no unrecorded liens, encumbrances, or disputes exist on the property. Both are often required by a title company at project closeout, but they are separate documents executed by different parties for different purposes.

For standard residential or smaller commercial projects following a jurisdiction's statutory form, a well-structured template is typically sufficient. Legal review is advisable for large commercial or public projects with complex subcontractor tiers, projects in states with specific statutory form requirements (such as Illinois or Michigan), or situations where a dispute with a subcontractor exists at the time of signing. The cost of a brief legal review — typically $200–$500 — is small relative to the perjury and fraud exposure of an incorrectly executed statement.