Statutory declaration

A statutory declaration in construction is the signed declaration - usually that workers and sub-subcontractors have been paid - that contracts commonly require with every payment claim, with criminal consequences for declaring falsely.

The pressure point is circularity: you must declare everyone below you is paid to receive the money you need to pay them. Declare falsely and the exposure is personal and criminal; decline to declare and the contract says payment can be withheld.

Why it matters to subbies

Never sign an inaccurate declaration to keep cash moving - qualify it accurately instead, and remember a missing stat dec is a scheduling reason the builder must raise in the payment schedule, not a silent excuse.

General information for Australian subcontractors, not legal advice - contract drafting and state legislation vary and change; your document and your state's Act govern. Written by Mat Kennedy at The Construction Contracts Co.