Contractors are generally required to produce statutory
declarations and quittances as a precondition for receiving
progress payments and the release of their holdback.
If you would prefer to avoid receiving a judgment with the
The Court finds on the evidence that the amounts claimed by
the general contractor are not subject to any reserves pursuant to
the statutory declarations and quittances it issued to the project
owner for the periods concerned as a precondition for receiving
progress payments and release of the
The oral evidence the general contractor seeks to adduce
regarding such reserves is inadmissible, as it is intended to
contradict a written document in the absence of any commencement of
For these reasons, the Court dismisses the action brought by
the general contractor against the project owner, with
... then you should pay close attention to the wording of such
documents in order to ensure they contain the necessary reserves
for preserving your rights and recourses against the project
By way of example, Statutory Declaration form CCDC 9A-2001
provides for the following exceptions to the amounts that must be
declared by the contractor:
holdback monies properly retained;
payments deferred by agreement;
amounts withheld because of a legitimate dispute.
In order to avoid any ambiguity, you should specify all material
information regarding these exceptions and any other information
you would like to include, both in the statutory declaration and in
the quittances delivered to the project owner.
You could accordingly refer to an attached schedule specifying,
in addition to the basic exceptions mentioned above:
changes to the work that have not been included because, for
example, they are still being negotiated or are being processed
pursuant to a cost-plus arrangement;
claims declared or submitted for certain additional costs
and/or time extensions, for example indirect costs associated with
a change order whereunder only direct costs have been agreed to and
the contractor wishes to reserve its rights with respect to
indirect costs. We take this opportunity to recommend, moreover,
that you follow the contractual procedure carefully in order to
preserve your rights and recourses in this connection, as courts
are quite strict in this regard;
amounts for work performed during the period covered by the
declaration and quittance but not able to be timely billed because
of delays by subcontractors in requesting payment;
any exceptions included in the statutory declarations and
quittances of your subcontractors and suppliers;
You could also agree, for example during the project launch
meeting, on exceptions that will apply systematically to your
statutory declarations and quittances, although it is still
preferable to expressly specify them on each such
You will thus avoid the risk of having the contents of your
statutory declarations and quittances being used against you in a
court of law.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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