If you’re considering acting as your own general contractor for your home construction project, chances are you’ve already started to familiarize yourself with the documentation that will be required along the way. One of those documents is the sworn statement form, which is used throughout the duration of the home construction process. Whether you’re contracting out the project or doing the work yourself, understanding the sworn statement will benefit you throughout the entirety of your home construction.

What is the sworn statement?

The sworn statement is a detailed, itemized breakdown of each step in the construction process. It tracks everything from the architectural services to foundation work, building materials, appliances, furnishes, and fixtures installed.

Its main purpose is to ensure all subcontractors and suppliers have received payment for the services provided in the construction of your home. It also protects the property owner from unexpected mechanics liens, so you don’t pay for the same service twice!

When is the sworn statement used?

The sworn statement is not a one-time form. It will initially be introduced at the beginning of your construction project and will be updated and resubmitted each time you make a draw request. A draw is a request to your lender to release the funds needed to complete the next step in the construction process. Click here to learn how to request a draw.

What will your sworn statement track?

The sworn statement will track:

• Funds disbursed
• Your remaining loan balance
• Payments made to subcontractors

It also tells the title company which lien waivers are required at each stage.

Who completes your sworn statement?

If you are acting as your own general contractor, you will be responsible for completing the sworn statement yourself. For contracted builds, the builder will complete and submit the sworn statement.

If you are considering acting as your own general contractor, make sure you are comfortable taking on the responsibility of managing the construction process, including submitting the sworn statement. While it is entirely possible to manage your own construction project, ask yourself how organized, detail-oriented, and confident you are using applications like Microsoft Excel, which is required when using the sworn statement form provided by GreenStone.

Using the sworn statement form provided by your lender is not mandatory but can help make the process smoother by ensuring consistency. Your title company and construction disbursement specialists will already be familiar with the lender’s format, which can help avoid confusion.

How to complete and submit your sworn statement

1. When applying for your home construction loan with GreenStone, you will need to provide an accurate estimate of the costs of each service. First, you will obtain quotes from any contractors or subcontractors. List any contractors you plan to use in the Subcontractor and Supplier column of the form.

2. The material and labor costs will be listed in the Total Contract Price column. While vendors and materials may change later throughout the project, the initial estimates must be realistic and completed prior to your first draw.

3. Once your loan paperwork has been signed and you have received your first draw, you will make a manual entry into the Amount Currently Owing column for the amount you are requesting for each part of your project. This will total at the bottom each time the form is edited. You will then sign the form with a notary, and provide the form to your team at GreenStone, and the title company.

3. After receiving the funds for your draw, and paying subcontractors or suppliers, you will move the amount you received over to the Amount Already Paid column, keeping accurate record of the amount paid with lien waiver forms and receipts. This paperwork is a crucial part of your loan process and will need to be provided to GreenStone and your title company before you take another draw.

4. If the actual cost of a service differs from what was estimated in your initial quote, an adjustment can be made in the Adjustment Change Order column. The Current Contract Price column will automatically adjust with these updates.

5. Finally, the Balance to Complete column will keep a running total of the remaining costs to complete your project. The total balance in this column should never exceed the funds you have available with GreenStone.

Watch a step-by-step example of completing a sworn statement below:

GreenStone provides different sworn statement versions for:

• Site-built homes
• Pole barns
• Modular homes

Sworn statement forms from GreenStone vary by state for Michigan and Wisconsin.

Your GreenStone team is here to help

Whether you’re considering acting as your own general contractor or not, the home construction process can seem daunting, but it is also a very rewarding experience. If you have questions about the sworn statement or other construction documents, your team at GreenStone is here to help! Reach out to your construction disbursement specialist at any time or contact your local branch to get started with the home construction process.