A sworn statement in construction is a notarized document, signed by the general contractor under oath, that lists every subcontractor and supplier on a project along with how much each one is owed. It gives the property owner and the lender a complete picture of where payment is going, so no one on the job can later surface with a mechanic’s lien the owner didn’t see coming. Because it is sworn, the signer is attesting under penalty of perjury that the list is accurate and complete.
What the Document Contains
The heart of a sworn statement is a payment ledger. For each subcontractor and supplier, it shows the party’s name, address, and contact information, plus four financial figures: the total contract amount, the amount already paid, the payment currently due, and the remaining balance. The document also identifies the project by name and location, the owner, and the general contractor.
At the bottom, the signer declares that the list is complete and that no one outside it is owed money for work on the project. That declaration is signed in front of a notary public. The notarization is what turns the document from a payment breakdown into a legally binding oath.
Why Owners and Lenders Require One
The point of a sworn statement is lien protection. On a typical project, the owner contracts with a general contractor, who hires subcontractors and buys materials from suppliers. The owner has no direct relationship with those downstream parties. If the contractor collects a payment from the owner but fails to pass it along, the unpaid subcontractor can file a mechanic’s lien against the owner’s property. The owner can end up paying twice: once to the contractor, and again to clear the lien.
A sworn statement cuts off that risk. Once the contractor has listed every party owed money and sworn to the list, the owner knows exactly who needs to be paid before funds are released. Several states require a sworn statement by statute before the contractor is entitled to payment. If the contractor leaves someone off and that party later files a lien, the contractor is exposed to perjury charges and civil liability, and the owner has documented proof of relying on the sworn disclosure.
Projects that skip this step are where most trouble starts. The owner pays in good faith, a subcontractor goes unpaid, and a lien lands on the property months later. Requiring a sworn statement with each payment application is the most effective way to prevent that outcome.
When It Has to Be Submitted
The usual trigger is a payment application. In states that require sworn statements, the contractor must submit an updated one with each progress payment request and again at final payment. The statement covers everyone who performed work or supplied materials during the billing period.
Contracts often impose their own requirements on top of statute. Construction loan agreements commonly require a sworn statement with every draw. The title company and the lender both receive copies, and the lender will not release funds until the statement is reviewed and approved.
A final sworn statement is typically required at closeout. It covers the whole project rather than a single billing period and confirms that every party has been paid in full or that specific amounts are still outstanding. The final statement is usually a prerequisite for releasing retainage, the percentage of the contract price the owner has held back until completion.
Who Prepares and Signs It
Preparation falls to the general contractor, who has direct knowledge of every subcontractor and supplier, the contract amounts, and the payment history. Subcontractors may in turn be asked to provide their own sworn statements to the general contractor, listing their sub-subcontractors and suppliers. The result is a chain of disclosure that runs down the project hierarchy.
The owner’s role is to demand the statement before releasing payment. Where statute requires it, the owner has a legal duty to do so. Paying without one invites the exact lien exposure the document is designed to prevent.
How It Differs From a Lien Waiver
Sworn statements and lien waivers often travel together, but they do different jobs. A sworn statement is a disclosure: it tells the owner who is working on the project and what each party is owed. A lien waiver is a release: the party signing it gives up the right to file a mechanic’s lien for the payment received.
- Timing. The sworn statement goes in with the payment request. The lien waiver is signed when payment is received.
- Signer. The general contractor signs the sworn statement for the whole project. Each subcontractor and supplier signs its own lien waiver.
- Notarization. Sworn statements must be notarized. Lien waivers require notarization only in a handful of states or where the contract demands it.
- Consequences of false content. A false sworn statement can lead to perjury charges. A signed lien waiver simply bars that party from filing a lien for the covered payment.
Both documents protect the owner from surprise lien claims, but neither substitutes for the other. Accepting lien waivers without a sworn statement means losing the one document that shows who else on the project might still be owed money.
What Happens If the Statement Is False
Because the document is signed under oath, false information is perjury. Under federal law, perjury carries a maximum penalty of five years in prison, a fine, or both.1Office of the Law Revision Counsel. 18 USC 1621 Perjury Generally Many states also impose their own criminal penalties for false sworn statements in the construction context, often scaled to the dollar amount involved.
Civil liability runs alongside the criminal exposure. If a contractor omits a subcontractor and the owner releases funds based on the incomplete disclosure, the contractor can be held liable for the resulting lien claims, legal costs, and damages. The exposure is not limited to deliberate fraud. A statement with inaccurate payment amounts or an overlooked supplier still breaches the oath, because the signer swears to the accuracy and completeness of the entire document.
Standard Forms and State Variation
The American Institute of Architects publishes forms that are widely used in the industry. AIA Document G907 is the generic sworn construction statement, and G907MI is a Michigan-specific version written to that state’s statutory requirements.2AIA Contract Documents. Important Considerations for Sworn Construction Statements and Lien Waiver and Release Forms A related form, AIA Document G706A, is the contractor’s affidavit of release of liens, which confirms that lien waivers have been collected.3AIA Contract Documents. G706A Contractor’s Affidavit of Release of Liens
Requirements vary significantly from state to state. Some states prescribe a specific form by statute. Others require certain information but leave the format flexible. Some have no statutory sworn statement requirement at all, though owners and lenders in those states routinely require one by contract.2AIA Contract Documents. Important Considerations for Sworn Construction Statements and Lien Waiver and Release Forms Before using a generic template, check whether your state’s lien statute imposes specific content or formatting rules. The wrong form can undermine the document’s enforceability, which defeats the reason for using one.