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.