Contents
The Illinois Sworn Statement form is a critical document designed to enhance transparency and accountability in construction projects. It serves as a declaration from contractors and subcontractors to the project owner and the title company, ensuring that all parties are informed about the financial aspects of the work being performed. This form requires the affiant—typically a contractor or subcontractor—to provide detailed information about their relationship to the project, including their role, the nature of the work being done, and the amounts due for labor and materials. It outlines the total original contract amount, the work completed to date, any extras to the contract, and the net amount earned, along with a breakdown of previous payments and any retention amounts. By requiring this sworn statement before each payment, the owner safeguards against potential disputes and ensures that all parties are fairly compensated. Additionally, the form stipulates the necessity of providing Waivers of Lien, which further protects the owner from any claims against the property. Overall, this document plays a vital role in the construction payment process, reinforcing the importance of clear communication and documentation among all stakeholders involved.
Things to Know About This Form
What is the purpose of the Illinois Sworn Statement form?
The Illinois Sworn Statement form serves as a declaration from contractors and subcontractors regarding their work and payments related to a specific project. It ensures transparency between the parties involved, particularly the owner and the contractors. By detailing the amounts due for labor and materials, this form helps prevent disputes over payment and establishes a clear record of financial obligations related to the project.
Who needs to complete the Illinois Sworn Statement?
Typically, the contractor and any subcontractors who have worked on the project are required to complete this form. It is essential for anyone who has provided labor or materials for the construction or improvement of a property. The owner of the property should also be involved in the process to ensure they are aware of all financial commitments associated with the project.
When should the Illinois Sworn Statement be submitted?
This sworn statement should be obtained before each payment is made to the contractor or subcontractors. By doing this, the owner can verify that all parties involved are accounted for and that payments align with the work completed. It acts as a safeguard to ensure that funds are distributed appropriately and that there are no outstanding claims against the property.
What information is required on the Illinois Sworn Statement?
The form requires specific details such as the names and addresses of all contractors and subcontractors, the kind of work performed, and the amounts due for each party. Additionally, it includes sections for the total amount of the original contract, work completed to date, any extras to the contract, and the net amount earned. This comprehensive information helps clarify the financial status of the project.
What are Waivers of Lien, and why are they important?
Waivers of Lien are legal documents that contractors and subcontractors sign to relinquish their right to file a lien against the property for unpaid work. In the context of the Illinois Sworn Statement, the contractor agrees to provide these waivers upon request. This is crucial for the owner, as it protects them from potential claims by subcontractors or suppliers who may not have been paid, ensuring that they have clear title to the property.
What happens if the Illinois Sworn Statement is not completed?
If the Illinois Sworn Statement is not completed, the owner may face risks, such as disputes over payments or claims against the property. Without this documentation, it becomes challenging to track who has been paid and who still has outstanding amounts due. This lack of clarity can lead to financial complications and potential legal issues down the line, making it essential to adhere to this requirement for all construction projects.
Key takeaways
When filling out and using the Illinois Sworn Statement form, keep these key takeaways in mind:
- The form must be completed accurately and truthfully. Any false information can lead to legal consequences.
- Clearly identify the contractor and subcontractor by including their full names and addresses.
- Detail the nature of the work performed and the specific premises involved in the contract.
- List all persons contracted for labor or materials, along with the amounts due to each.
- Ensure that the total amount requested does not exceed the agreed percentage of the work completed to date.
- Obtain Waivers of Lien for all materials when demanded, as this protects against future claims.
- Have the statement notarized to add a layer of authenticity and legal validity.
- Remember to collect the sworn statement before each payment to ensure compliance and protect your interests.
Common mistakes
-
Failing to provide accurate personal information. It’s essential to fill in your name and title correctly. Any errors can lead to confusion or delays.
-
Not specifying the correct owner’s name. The owner’s name must match the contract exactly. Inaccuracies can result in payment issues.
-
Omitting details about the project. Ensure that the description of the work being done is clear and comprehensive. Lack of detail can create misunderstandings.
-
Incorrectly calculating the amounts due. Double-check all figures related to payments and retainage. Mistakes here can lead to financial discrepancies.
-
Neglecting to sign the document. A signature is crucial for the validity of the sworn statement. Without it, the form may be considered incomplete.
-
Forgetting to include the date of the statement. This date is important for tracking payments and obligations. Leaving it blank can cause confusion.
-
Not providing the necessary waivers of lien. This is a requirement under the contract. Failing to supply these can delay payment.
-
Ignoring the notary section. This statement must be notarized to be legally binding. Skipping this step can invalidate the entire document.
How to Fill Out Illinois Sworn Statement
Filling out the Illinois Sworn Statement form is an important step in ensuring that all parties involved in a construction project are properly documented. This statement verifies the contractors and subcontractors involved, as well as the amounts due for their services. Follow these steps to complete the form accurately.
- Fill in the County: Write the name of the county where the work is being performed in the designated space.
- Page Number: Indicate the page number and total number of pages in the spaces provided.
- Affiant's Name: Enter the name of the person making the statement in the first blank line.
- Position: State the position or title of the affiant in the next blank line.
- Company Name: Write the name of the company the affiant represents in the following blank line.
- Owner's Name: Fill in the name of the property owner in the space provided.
- Contract Description: Describe the work being done under the contract in the designated area.
- List Contractors/Subcontractors: In the table provided, list the names and addresses of all contractors and subcontractors involved.
- Kind of Work: Specify the type of work each contractor or subcontractor is performing next to their name.
- Payment Details: For each contractor or subcontractor, fill in the amounts due, including retention and previous payments.
- Total Contract Amount: Calculate and enter the total amount of the original contract.
- Work Completed: Indicate the total value of work completed to date.
- Extras to Contract: If applicable, add any extras to the contract amount.
- Retained Amount: Specify the percentage of the total that has been retained.
- Net Amount Earned: Calculate and enter the net amount earned to date.
- Credits to Contract: List any credits that apply to the contract.
- Net Amount of This Payment: Calculate and enter the net amount being requested in this payment.
- Adjusted Total Contract: Update the total contract amount considering all adjustments.
- Balance Due: Finally, indicate the balance that is yet to be paid.
- Signature: The affiant must sign the form in the designated area.
- Notary Section: A notary public must complete the section at the bottom, including their seal and signature.
After completing the form, ensure that it is reviewed for accuracy. This sworn statement should be submitted to the owner before any payments are made, ensuring all parties are informed and protected.
Other PDF Forms
Free Inheritance Tax Advice - The Illinois 700 form is required for filing estate and generation-skipping transfer taxes for decedents who died on or after January 1, 2021.
To ensure you have all the necessary documentation for your sale, it's vital to understand the Florida Golf Cart Bill of Sale process. Discover more about this important form by reviewing the complete details on our effective golf cart bill of sale requirements.
Il-1040 Form 2023 - Property ownership must be disclosed in the form, noting physical addresses and title details.