Free Illinois Sworn Statement Template

Detailed Guide for Filling Out Illinois Sworn Statement

When completing the Illinois Sworn Statement form, it's essential to provide accurate and comprehensive details to ensure all parties involved are well-informed about the contractor and subcontractor relations, including payments and work done or to be done on a specific project. This form serves as a formal documentation to support the ongoing financial transactions related to a construction project, safeguarding the interests of the owner, contractor, and subcontractors by providing a transparent account of the contract's financial aspects. Below are step-by-step instructions to fill out the form correctly.

1. Start by filling the COUNTY at the top of the form where indicated to specify where the property is located.
2. In the section that begins with "The affiant," write your full name as the person completing the form.
3. Next, specify your role or position and the name of the company or contractor you represent in the spaces provided.
4. Then, clearly describe the contract including naming the owner, the nature of the work being done, and the location of the property in the designated sections.
5. List all involved parties such as subcontractors and suppliers, along with what they have provided or will be providing, as well as the financial arrangements including amounts due or paid to date.
6. For each entry under "Name and Address," "Kind of Work," and the financial columns, ensure accurate figures are inserted to reflect the current status of payments, work completion, extra works, and balance details.
7. Fill in the total amount of the original contract, work completed to date, extras to the contract, and the net amounts related to payments and balances.
8. Adjust the total contract amount and balance to be due, including retention details as required.
9. Confirm that the payments requested plus those already made do not exceed the agreed percentage of work completed to date. Insert the appropriate percentage where indicated.
10. Sign and date the form at the bottom where it reads "SIGNED" and "POSITION." Your signature confirms that the information provided is accurate to the best of your knowledge.
11. The form must be notarized, so ensure that a Notary Public is present to witness your signature. The Notary will fill in the date, their seal, and signature to officiate the document.

After the form is accurately filled out and notarized, it becomes a binding document. This means that everyone involved has a clear understanding of the financial status of the project. It is crucial that this form is collected by the owner before making any payments, as it provides a detailed account of all transactions related to the project, ensuring that all parties are fairly compensated and aware of the financial arrangements.

1. What is the Illinois Sworn Statement form used for?

   This form is used in the construction industry in Illinois for contractors and subcontractors to provide a detailed account of all persons contracted for labor or materials under a specific project. It outlines the work completed, the amounts paid, and the amounts due or to become due to each contractor or subcontractor involved. This ensures transparency and accountability in financial transactions related to the project.

2. Who needs to fill out this form?

   The contractor or subcontractor assigned to a project must fill out the Illinois Sworn Statement form. They are responsible for providing accurate information about each person or entity they have contracted, including the type of work performed, the total payment due, and the balance that is to become due.

3. What information is required on this form?

   To complete the form, several pieces of information are necessary:

   • The name and address of the contractor or subcontractor
   • A description of the contracted project
   • A complete list of all contracted parties, the kind of work they've performed, and the total amount due to each
   • The total amount of the original contract, work completed to date, extras to the contract, and the net amount earned
   • Retention amounts, payments previously made, adjustments, and the current payment requested
   • Signatures from the affiant and a notary public, including the date of signing

4. Why is a notary public required?

   A notary public is required to witness the signing of the statement to verify the identity of the signer and ensure that the signer understands the document's contents. The notary public's seal and signature also provide a level of official authenticity to the document, making it legally binding.

5. What is the purpose of the retention amount listed in the statement?

   The retention amount represents a percentage of the total payment withheld by the owner until the project is completed satisfactorily. This practice is common in the construction industry to ensure that contractors or subcontractors fulfill their obligations regarding quality and timeliness before receiving the full payment.

6. How often should this form be updated and submitted?

   It is recommended that the Illinois Sworn Statement form be updated and submitted before each payment is made throughout the duration of the project. This practice helps maintain up-to-date financial records and makes adjustments for any new work completed or changes in the project scope.

7. What happens if the form is not submitted?

   If this form is not submitted as needed, it can lead to disputes between the property owner, the contractors, and the subcontractors over payments. Lack of this document might also affect the legal rights of contractors or subcontractors in claiming payments due to them under Illinois law.

8. Where can one find the Illinois Sworn Statement form?

   The form is available from the Greater Illinois Title Company website. It can be downloaded for both internal and external use. Ensure to verify the form is the latest version by checking the document reference number.

9. Are there any legal consequences for submitting a false statement?

   Yes, submitting a false statement on this form is considered a serious matter and can result in legal consequences. Since the form is considered a sworn statement, any misinformation or intentional falsehoods can be prosecuted under perjury laws in Illinois.

1. Not double-checking the accuracy of the legal name and address of both contractor and subcontractor can lead to mistakes on the Illinois Sworn Statement form. Since this form is a legal document, errors in basic information can cause significant delays and may impact the legality of the statement.

2. Failing to accurately report the total amount of the original contract, work completed to date, and extras to the contract. These financial figures are crucial for the owner and the Greater Illinois Title Company to understand the project's financial status and for the validation of claims made on the form.

3. Omitting or inaccurately stating the percentage retained from the contract can complicate financial reconciliations and affect the final payment to the contractor or subcontractor. This figure is vital for understanding the net amount earned and ensuring all parties are on the same page regarding withholdings.

4. Incorrectly listing the names, addresses, and the kind of work done by other contracted parties involved in the project. This detailed information helps in the proper allocation of payments and in the tracking of project progress. Mistakes in this section could lead to undue payment disputes or delays.

5. Forgetting to include or inaccurately calculating the net amount due, including current payments and retentions. This oversight could lead to financial discrepancies, affecting both the immediate and future cash flows of subcontractors and suppliers.

6. Not obtaining or incorrectly filling out the waivers of lien section. This is crucial for protecting all parties' interests and ensuring clear title transfer without encumbrances from liens against the property for unpaid labor or materials.

7. Overlooking the need to have the statement notarized, which is a common yet critical mistake. A sworn statement needs to be verified by a notary public to confirm the identity of the signatory and the truthfulness of the statement, making the document legally binding.

Overall, attention to detail and a thorough review process are essential when completing the Illinois Sworn Statement form. Ensuring the accuracy of all entries and understanding the legal implications can help in avoiding common pitfalls.

The Illinois Sworn Statement form is a crucial document used in the construction industry, serving as a declaration by contractors and subcontractors regarding the work performed and financial aspects related to a construction project. This form helps in ensuring transparency and accountability among all parties involved in a project, including the owners and title companies. To further bolster the legal and procedural integrity of construction projects, several other forms and documents are commonly used alongside the Illinois Sworn Statement form. Understanding these documents is essential for all stakeholders to ensure compliance and facilitate smooth project completion.

• Waiver of Lien: This document is a relinquishment of a contractor's or subcontractor's right to a lien on the property owner's land or building. It's typically provided upon receipt of payment and ensures that claims for payment are resolved, preventing any future legal disputes over property titles.
• Notice of Commencement: A legal document that signifies the official start of a construction project. Filed with the local county recorder, it provides information about the project, including the property owner, contractor, and surety (if any), and specifies the location of the project. This document is important for maintaining a public record of the project and can affect lien rights and timelines.
• Performance Bond: This type of bond is a guarantee for the satisfactory completion of a project by the contractor. If the contractor fails to complete the project according to the agreed-upon terms, the bond provides financial compensation to the property owner. It assures the owner of project completion and compliance with the terms of the contract.
• Labor & Material Payment Bond: Similar to performance bonds, these ensure that the contractor pays all subcontractors, laborers, and material suppliers involved in the project. It protects the property owner from potential liens and legal conflicts due to non-payment by the contractor to the associated parties.

When used in conjunction with the Illinois Sworn Statement form, these documents collectively provide a framework that promotes fair practices, mitigates risk, and protects the rights of all parties involved in construction projects. Professionals engaging in such projects should familiarize themselves with these documents, their purposes, and requirements to ensure comprehensive compliance and project success. It's not just about building structures—it's about building trust and accountability in the construction industry.

• Affidavit: Much like the Illinois Sworn Statement, an affidavit is a written statement confirmed by oath or affirmation, for use as evidence in court. Both require the signer to swear that the information provided is true and accurate, and both must be notarized to verify the identity of the signer.

• Mechanic's Lien: This document is similar because it also relates to the construction industry. A Mechanic's Lien provides security to builders and artisans by detailing money owed to the contractor for work done or materials provided on the property. Like the Illinois Sworn Statement, it lists amounts due or paid, though its primary purpose is to secure an interest in the property until payment is made.

• Payment Application for Construction Contract: Similar to the Sworn Statement, this document outlines the current payment requested by a contractor or subcontractor, including work completed, materials provided, and the amount due. Both documents serve as a formal request for payment, although the Sworn Statement includes a sworn oath regarding the accuracy of the information provided.

• Warranty Deed: While serving a different purpose — transferring property ownership — a Warranty Deed is similar to the Illinois Sworn Statement in that it must be signed before a notary, involves real estate transactions, and requires the grantor's (or in the case of the sworn statement, the affiant's) assertions to be truthful and accurate under oath.

• Conditional Waiver and Release on Progress Payment: This document is used in construction to release a property from lien claims up to a certain date, provided that payments are made. Like the Sworn Statement, it deals with the financial transactions between contractors and property owners, tracking payments and work progression.

• Subcontractor Agreement: This agreement outlines the work a subcontractor will perform, including the scope of work, materials provided, and payment terms. It's akin to the Sworn Statement as both detail the nature of work and financial terms within construction projects, though the Sworn Statement focuses more on the financial status at a specific point in time.

• Progress Billing Statement: Used in various industries, including construction, this document requests payment for work completed during a period. It aligns with the Sworn Statement by detailing work done, materials supplied, and amounts owed, but the latter includes sworn verification of its contents.

When filling out the Illinois Sworn Statement form, there are specific actions one should take to ensure the process is handled correctly, as well as several actions to avoid to ensure the statement's integrity and compliance. Below are listed the dos and don'ts to consider.

What you should do:

1. Ensure all information is accurate and complete. Double-check names, addresses, contract amounts, and descriptions of work or services provided.
2. Verify that the total amount of the original contract, work completed to date, extras to the contract, and the net amount earned are calculated correctly and align with the contract terms.
3. List all persons who have been contracted with, including those furnishing materials or labor, ensuring that their names, the kind of work performed, and amounts due are clearly stated.
4. Sign and date the statement in the presence of a Notary Public to authenticate the document.
5. Keep a copy of the signed and notarized statement for your records to protect your interests and ensure you have evidence of your disclosure.

What you shouldn't do:

• Don't leave blank spaces or unanswered questions. If a section does not apply, mark it as "N/A" (not applicable) to indicate it was not overlooked.
• Avoid estimating amounts or information. Use exact figures and detailed descriptions to prevent any misunderstandings or disputes.
• Don't sign the statement without ensuring every detail is accurate and true. Providing false information can lead to legal consequences.
• Avoid rushing through the form. Take your time to review each section to ensure completeness and accuracy.
• Don't forget to obtain and attach any required waivers of lien from subcontractors and suppliers when demanded, as indicated on the form.

Filling out the Illinois Sworn Statement form with diligence and attention to detail can save time, prevent legal issues, and facilitate a transparent relationship between contractors, subcontractors, and property owners. Always read the form carefully and consult with a professional if you have questions or concerns regarding its contents or how to complete it.

There are several misconceptions about the Illinois Sworn Statement form used by contractors and subcontractors. Understanding these can help ensure accurate and compliant completion of the document.

• Only for Large Projects: A common misconception is that the Sworn Statement is only necessary for large construction projects. In reality, it's essential for any project size to ensure all parties are paid appropriately and to prevent disputes over payments.
• Legal Representation Required: Many believe that completing the Sworn Statement requires legal assistance. While legal advice can be beneficial, especially in complex cases, the form is designed to be filled out by the contractors and subcontractors themselves, provided they follow its instructions carefully.
• No Need for Updates: Some contractors might think that once the Sworn Statement is filled out and submitted, no updates are necessary. However, it should be updated and resubmitted with each payment application to accurately reflect ongoing work and changes in the project.
• Only the General Contractor Needs to Submit: It's a misconception that only general contractors need to submit this form. Subcontractors should also prepare and submit a Sworn Statement to detail their work and costs, ensuring transparency and proper documentation of all work performed.
• Labor and Materials Only: Another misconception is that the statement only covers labor and materials. While these are significant components, the form also accounts for other costs related to the project, including any extra work or adjustments to the contract.
• Informal Documentation is Acceptable: Some may think informal records or verbal agreements can substitute for the formal Sworn Statement. However, for legal and financial protection, the completed and sworn document is required to accurately reflect the project's financial details and commitments.
• No Impact on Lien Rights: There's a misconception that the Sworn Statement has no bearing on lien rights. In fact, submitting this form, along with Waivers of Lien as required, is a critical step in preserving lien rights and ensuring all parties are paid for their contributions to the project.

Understanding and correcting these misconceptions is vital for contractors and subcontractors working in Illinois. Accurate completion and use of the Illinois Sworn Statement form protect the interests of all project stakeholders and help in the smooth administration of construction payments.

Understanding how to properly fill out and use the Illinois Sworn Statement form is crucial for contractors and subcontractors working on property improvements. Here are four key takeaways to ensure accuracy and compliance:

• The Illinois Sworn Statement must include a comprehensive list of all parties contracted to provide labor or materials for the property improvement project. It’s important to ensure that every entity involved is accounted for, along with the correct amount owed or paid to each.
• Before signing, the affiant (the person making the statement) must confirm that the information provided is a “full, true and complete statement” of the work done, materials provided, and the payments made or due. This emphasizes the need for thoroughness and accuracy in documenting the project details.
• Retention amounts and any previous payments must be clearly detailed in the statement. This includes outlining the total contract amount, work completed to date, any extras to the contract, and the net amount earned. This clear delineation ensures transparency and helps prevent disputes over payment.
• It is obligatory for the affiant to agree to furnish Waivers of Lien upon request. This requirement underscores the importance of being prepared to prove that all material suppliers and laborers have been or will be paid, which protects the property owner from potential liens.

This form acts as a critical document ensuring that all financial transactions related to labor and materials for property improvements are transparent and agreed upon by all parties. Filling it out accurately and understanding its implications can help streamline the payment process and protect the interests of contractors, subcontractors, and property owners alike.