Blank Michigan Sworn Statement PDF Template

FAQ Section: Understanding the Michigan Sworn Statement Form

1. What is the Michigan Sworn Statement form?

   The Michigan Sworn Statement form is a legal document used primarily in the construction industry within the state of Michigan. It serves as a formal declaration by contractors, subcontractors, or suppliers who are involved in public works projects. The purpose of this statement is to affirm that all subcontractors, suppliers, and laborers who contributed to a specific project have been listed and that their owed payments for wages, fringe benefits, and withholdings are accurately documented and due but unpaid as of the statement's date.

2. Who needs to file this form?

   Contractors, subcontractors, or suppliers engaged in public works improvements within Michigan are required to complete and file this form. It's necessary when asserting that all payments due to involved parties are disclosed, especially in situations where payments are due but have not been completely settled.

3. What information is required on the form?

   Required information includes the name of the person signing the statement, the company’s name, and their role in the project (e.g., contractor, subcontractor, supplier). Also required are the contract number, project name, and details of all known subcontractors and suppliers, including the type of improvement furnished, the total amount of the contract, what has been paid, the balance currently owing, and details of any fringe benefits and withholdings still due.

4. How is the Sworn Statement form submitted?

   The form must first be duly completed, signed, and then sworn before a notary public. Following this, the notarized document is typically submitted to the relevant party requesting the sworn statement, such as the project's owner, lessee, or general contractor, to verify that all financial obligations related to subcontractors, laborers, and suppliers are fully accounted for.

5. Why is the Sworn Statement form important?

   This form plays a crucial role in the construction industry by providing transparency and ensuring fairness among all parties involved in a project. It helps to prevent disputes over payments and reduces the risk of construction or bond liens against the property or project. By clearly listing all parties involved and confirming the status of their payments, it serves as a vital tool for managing financial and legal risk.

6. What are the consequences of not filing the form or providing false information?

   There are significant criminal and civil penalties for individuals who, with intent to defraud, provide false statements on this form for the purpose of obtaining payment. These can include fines, restitution, and potentially imprisonment for fraudulent acts, highlighting the importance of accuracy and honesty in completing this document.

7. Is there any expiration date for this form?

   No specific expiration date is associated with the form itself; however, the notary public's commission expiration date listed on the form denotes the timeline until which the notarization is considered valid. Parties receiving the sworn statement may require a certain timeframe within which it must be submitted, so it's important to refer to the specific project requirements or consult with legal counsel if uncertain.

8. Can this form be amended once filed?

   If new information comes to light or if any details were incorrectly reported, it is possible to amend the Michigan Sworn Statement, but this must be done formally. An amended statement should be prepared, notarized, and submitted following the same process as the initial submission. Those needing to amend a statement should also notify any parties who received the original document to ensure that all parties are operating with the most current and accurate information.

1. Not specifying the role correctly: One of the first mistakes is failing to accurately select and specify whether the entity is a contractor, subcontractor, or supplier. This is crucial for the sworn statement's legality and accuracy, impacting the document's validity.

2. Omitting details in descriptions: The form requires detailed descriptions of the public works improvement, including the county in Michigan where it's situated and project specifics. An incomplete description undermines the statement's credibility and can lead to processing delays.

3. Incorrect or incomplete financial information: Error in stating the total amount furnished, the amount already paid, and the current balance owing can significantly affect the transparency and accuracy of financial dealings reported on the form. This may result in disputes or legal challenges.

4. Failure to list all subcontractors and suppliers: Not including every subcontractor, supplier, and laborer, along with what is owed to each, can lead to incomplete disclosures, risking potential legal claims for undeclared payments or contributions.

5. Not accurately representing amounts due: Misrepresenting or inaccurately calculating wages, fringe benefits, and withholdings due but unpaid leads not only to legal concerns but also financial discrepancies, affecting relationships with subcontractors and suppliers.

6. Leaving out authorized agent information: If the signatory is not an officer or employee of the company and is signing as an authorized agent, failing to include this information may question the document's legitimacy and the authority of the person signing the document.

7. Incorrect or missing notary information: The form needs to be notarized to be legally binding. If the notary's information is incorrect, missing, or the document is not properly notarized, this can invalidate the sworn statement, potentially leading to legal headaches.

Making sure these details are correctly filled out not only ensures compliance with Michigan's legal requirements but also builds a foundation of trust and transparency between all parties involved in the public works project.

Completing and submitting the Michigan Sworn Statement form is a crucial step in satisfying legal requirements for various construction projects within Michigan. However, to fully comply with the law and ensure a smooth process, a range of other forms and documents are often used in conjunction with this form. Each document serves its unique purpose and collectively, they ensure comprehensive documentation for construction projects, safeguarding the interests of all parties involved.

• Notice of Commencement: This document must be filed before any actual work begins. It includes information about the property owner, general contractor, surety (if applicable), and describes the project.
• Construction Lien Claim: If a contractor, subcontractor, supplier, or laborer has not been paid, they may file this lien against the property. This legal claim ensures they have a right to compensation.
• Partial Waiver of Lien: This is provided during the project as payments are made, indicating that partial payments have been received and waiving lien rights for that portion of the work.
• Full Unconditional Waiver: Similar to the Michigan Sworn Statement form’s FULL CONDITIONAL WAIVER section, this document is used at the completion of a project, indicating that all payments have been made and the contractor or supplier fully waives rights to future liens against the property.
• Notice of Furnishing: Subcontractors and suppliers submit this notice to inform the property owner and general contractor that they are providing labor or materials to the project, ensuring their right to claim a lien if not paid.
• Proof of Service: This document verifies that notices, waivers, and other legal documents have been properly served to the involved parties as required by law.
• Claim of Lien: This legal document is filed with the county recorder’s office when there's an unpaid debt for work or materials provided, officially recording the lien on the property title.
• Affidavit of Services Rendered: This affidavit provides a sworn statement detailing the services or materials provided, supporting claims for payment or liens.
• Release of Lien: Filed after a lien claimant receives payment, this document officially removes the lien from the property’s title.
• Project Closeout Checklist: Although not a formal legal document, this checklist ensures all necessary documents, including the Michigan Sworn Statement and associated forms, are completed and filed, marking the project's conclusion.

The proper utilization of these forms in conjunction with the Michigan Sworn Statement ensures full legal compliance and protection for property owners, contractors, subcontractors, and suppliers. By documenting every step of the project from start to finish, these documents collectively provide a clear legal framework that supports transparent and fair dealings throughout the construction process.

• The Affidavit of Contractor is similar in function, as it also involves a sworn declaration by a contractor regarding the status of payments to subcontractors, suppliers, and laborers for a particular project. Both documents are used to certify the payment status and to mitigate the risk of liens against a property.

• Conditional Waiver and Release Upon Final Payment is closely related because it is another legal document used in the construction industry to acknowledge the receipt of final payment and waive lien rights, contingent upon the payment clearing. It directly complements the Michigan Sworn Statement form by securing the transaction from potential future disputes.

• The Notice of Commencement serves a parallel purpose by formally announcing the start of a construction project to relevant parties, which lays the groundwork for any subsequent sworn statements by clarifying project details and participants from the outset.

• Labor and Material Payment Bond shares similarities because it is a financial guarantee that subcontractors and suppliers will be paid for their work and materials, protecting them in a similar vein to how the Michigan Sworn Statement intends to prevent unpaid claims.

• A Mechanic's Lien contrasts with the sworn statement in its purpose but is related in context; it is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property. The sworn statement tries to preempt the filing of such liens by declaring all payments.

• The Performance Bond, much like the payment bond, stands as a promise to the project owner that the contractor will complete the project to the agreed-upon specifications. It complements the sworn statement by adding another layer of financial security and ensures the project's completion.

• Contractor's Final Payment Affidavit is akin to Michigan's Sworn Statement form as it serves to declare that all subcontractors and suppliers have been fully compensated, which is a necessary step before the final payment can be released to the contractor.

• The Release of Lien document, while serving the endpoint of the lien process by liberating the property from claims, is affiliated with the sworn statement by ensuring that all parties declare payment issues resolved, thus preventing potential liens.

• Project Completion Certificate is associated with the sworn statement as it symbolizes the conclusion of construction work and typically requires confirmation that all financial obligations have been fulfilled, similar to declarations made in the sworn statement.

• A Subcontractor's Sworn Statement acts simultaneously with the contractor's version, stating the financial dealings and work contribution specific to a subcontractor's participation in a project. This specificity complements the broader view offered by the Michigan Sworn Statement form.

Filling out the Michigan Sworn Statement form accurately is crucial for contractors, subcontractors, and suppliers working on public works projects in Michigan. Here's a list of dos and don'ts that can guide you through the process:

• Do thoroughly read the entire form before starting to ensure you understand the requirements.
• Do provide accurate and complete information for every field, following the instructions meticulously to avoid mistakes or omissions.
• Do use the precise legal names of all entities involved, including subcontractors, suppliers, and laborers, to prevent confusion or legal issues.
• Do double-check the contract ID numbers, project names, and all numerical data for accuracy to ensure there are no discrepancies.
• Do not leave any sections blank; if a section does not apply, clearly mark it as "N/A" (Not Applicable) to indicate it was not overlooked.
• Do not sign the form until all information is verified and complete; signing a form with false or incomplete information can lead to severe legal consequences.
• Do not forget to have the form notarized. The signing must be done in front of a notary public to validate your signature and the contents of the statement.
• Do not overlook the final review by a legal professional or experienced colleague, if possible, to catch any potential mistakes or areas of concern before submission.

Filling out the Michigan Sworn Statement form correctly the first time can save you from potential delays, legal issues, and financial penalties. Keep these guidelines in mind to ensure a smooth process.

When it comes to the Michigan Sworn Statement form, there are several misconceptions that people commonly have. Let's clear up some of these misunderstandings:

• Misconception 1: The form is only for large construction companies. In truth, any contractor, subcontractor, or supplier involved in a public works project in Michigan needs to use this form, regardless of their company’s size.

• Misconception 2: It's an optional document. Actually, this sworn statement is a mandatory document that provides a record of all unpaid wages, fringe benefits, and withholdings for laborers involved in a public works project.

• Misconception 3: Only the company's owner can sign the form. The form can be signed by the contractor, subcontractor, supplier, or an authorized agent, not just the company's owner.

• Misconception 4: The form protects only the workers. While it's designed to ensure workers are paid, it also protects the owner, lessee, or general contractor from claims of construction or bond liens, showing that the project is free from such claims except as specifically noted.

• Misconception 5: Completion of the form assures immediate payment. Submitting the form is a step in the process to secure payment, but it does not guarantee immediate payment.

• Misconception 6: It's a one-time-only submission. The reality is that updates may be necessary as the project progresses and financial situations change, ensuring transparency about who still needs to be paid.

• Misconception 7: All sections apply to every contractor. Some parts of the form may not apply depending on whether one is a contractor, subcontractor, or supplier, or based on other specifics of the project work.

• Misconception 8: It's only about labor costs. Besides labor, the form includes sections for materials supplied, subcontracted work, and other project-related expenditures.

• Misconception 9: A notary public from any state can notarize the document. The form needs to be notarized by a notary public acting in the same Michigan county where the sworn statement is signed.

Understanding these key aspects of the Michigan Sworn Statement form is important for anyone involved in public works projects in Michigan to ensure compliance and to protect the financial interests of all parties involved.

Completing and utilizing the Michigan Sworn Statement form is an essential practice for contractors, subcontractors, and suppliers involved in public works projects in Michigan. This form ensures transparency and accountability, serving as a crucial document in the payment process. Here are six key takeaways to understand when dealing with this form:

• Accuracy is critical: The person completing the form must ensure that all information provided is accurate and truthful. This includes details about the company, the nature of the work performed, and the payments due to and from subcontractors and suppliers. Given the legal implications, errors or false statements can lead to civil or criminal penalties.
• It serves as a declaration of payment status: The form is used to declare the payments due to subcontractors, suppliers, and laborers for work performed under a public works contract. Listing all parties involved and the amount owed ensures transparency in the financial dealings of the project.
• Prevents payment disputes: By accurately listing all parties involved and the payments due, this form helps in preventing payment disputes. It provides a clear record of who has been paid, the amount paid, and outstanding balances, offering a layer of protection against claims of non-payment.
• The form has legal standing: Once sworn and notarized, the document serves as a legal statement. It represents to the project owner, general contractor, and other stakeholders that all disclosed financial obligations related to the project are accurate to the best of the signatory's knowledge.
• Minimizes the risk of liens: By disclosing the financial status of the project, including payments to subcontractors and suppliers, the form helps in minimizing the risk of construction or bond liens against the property or project. It assures that the project is free from any undisclosed financial liabilities that could result in liens.
• Conditional waiver included: The document sometimes is accompanied by a conditional waiver, which becomes effective upon receipt of payment. This aspect is crucial for finalizing financial transactions and releasing claims on the project, indicating that all parties have met their financial obligations to the satisfaction of others involved.

Understanding and properly filling out the Michigan Sworn Statement form is not just a bureaucratic step but a critical measure to ensure the financial integrity of a public works project. It provides a snapshot of the project's financial health and secures the interests of all parties involved.