CCDC 9A – Progress Payment Distribution by Contractor
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The **CCDC 9A – Statutory Declaration of Progress Payment Distribution by Contractor** is a crucial document used in the construction industry in Canada. Created by the Canadian Construction Documents Committee (CCDC), this form serves to verify that a contractor has properly distributed funds received from the owner to subcontractors, suppliers, and workers involved in the project. It's typically required by project owners or financial institutions before they release further progress payments to the contractor, ensuring transparency and protecting all parties involved.

What is CCDC 9A?

The CCDC 9A is essentially a sworn statement that the contractor submits, confirming that all obligations related to previous progress payments have been met. This includes payments to subcontractors, suppliers, and employees for services or materials provided up to a specified point in the project. By using this form, the owner or lender can be assured that the funds released for the project are being used appropriately and that there are no outstanding claims that could lead to liens or legal disputes down the line.

The document is commonly required during the construction process when the project is being paid in installments, based on the work completed at different stages (referred to as "progress payments"). Before the contractor receives the next installment, they must provide the CCDC 9A to demonstrate that they have distributed previous payments according to the contract.

Key Elements of the CCDC 9A

The CCDC 9A form includes several important pieces of information that help ensure clarity and accountability in the payment process. The contractor must declare that:
  1. All subcontractors, suppliers, and workers have been paid the amounts owed from previous progress payments.
  2. There are no outstanding claims or liens from subcontractors or suppliers regarding the work completed up to the point of the declaration.
  3. The funds received for the project have been used specifically for the services, labor, and materials related to the construction work under the contract.
This statutory declaration must be signed in front of a notary public or commissioner of oaths, adding a layer of legal responsibility. Submitting false information in the CCDC 9A can lead to serious legal consequences, including potential claims from unpaid subcontractors or suppliers, and could disrupt the flow of payments for the project.

Why is the CCDC 9A Important?

The CCDC 9A is important because it protects multiple parties in a construction project, ensuring that funds are properly managed and distributed. For **owners**, it provides peace of mind that their payments are being used to pay all parties involved in the construction process, reducing the risk of future lien claims. For **subcontractors and suppliers**, it serves as a guarantee that they will be paid for the work and materials they’ve provided, helping to avoid payment disputes and delays. For **contractors**, it helps maintain cash flow by allowing them to receive the next round of payments, as long as they’ve met their financial obligations.

This form is also critical for lenders who finance construction projects. Financial institutions often require the CCDC 9A before releasing progress payments to ensure that the funds are being used responsibly and to minimize the risk of liens being placed on the property due to unpaid bills.

When is the CCDC 9A Used?

The CCDC 9A is used throughout the course of a construction project whenever progress payments are made. Typically, a project owner will release payments to the contractor at various stages as work is completed. Before releasing each payment, the owner or lender will request the CCDC 9A to ensure that the contractor has paid all previous obligations. This process helps to keep the project running smoothly by ensuring that funds are properly allocated, and that no one involved in the project has unpaid claims that could lead to disputes or delays.

It’s common for the CCDC 9A to be required before the final payment on a project is made, but it can also be used for interim progress payments, particularly on larger projects where several payments are made over an extended period of time.

Final Thoughts

The **CCDC 9A – Statutory Declaration of Progress Payment Distribution by Contractor** is an essential document in the Canadian construction industry, promoting transparency, accountability, and trust. It ensures that contractors are using project funds properly, that subcontractors and suppliers are paid, and that owners and lenders can continue funding the project with confidence. By verifying that payments have been appropriately distributed, the CCDC 9A helps to minimize disputes, avoid liens, and keep construction projects on track. 

Contractors must take this process seriously, as any false declarations can lead to legal consequences and payment delays. Ensuring that all financial obligations are met before submitting the CCDC 9A benefits everyone involved and allows the project to proceed without unnecessary financial complications.

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