What is reasonable and/or the industry practice when it comes completing a contract with one's general contractor in terms of payments? Is there a standard hold-back amount? When is it released? Immediately after final inspection? I have a "Statutory Declaration" from the contractor saying all accounts have been paid. Is this of value? Is there something else we should be doing to make sure we aren't going to get liened by one of the trades who worked on the house? I really like our contractor and don't think he'd pull anything funny on us, but I'd like to do things properly. Thanks, Colin

You should get a release of lien form from each sub

Colin;

There is no standard hold back, it should be spelled out explicitly in your contract? It should be released if everything is done except some minor punch.
The contractors "Final Affidavit" must be notorized, if he lies on the notorized statement it is a criminal offense

Thanks for the replies!

The document shows a signature of a "Commissioner of Oaths" but there is no printed name so I have no idea who that is. And should there be a 'seal' with the Commissioner of Oaths signature (embossed into the paper)?

I suppose it really doesn't matter. If the document is a fake then it's still fraud and this fellow... he's just not the fraud sort. He'd be in more trouble from forging what looks like a legal document than anything else, right?

It would be a bit of work to track down all trades to get them to sign a document clearing us of any intent to lien. I've talked with them all and everyone seems happy.

Still thinking we should get our final inspection first. Hmmm...

your licensed contractor needs to sign any affidavits or sworn statements, if you do not have final inspections he should not be looking for final payment. In your previous post it sounded like he was done?
Banks do not release final funds until certificate of occupancy is issued and neither should you

Colin,

It is quite common to have a progress payment schedule written in your contract. The idea is that the contractor will receive draws (percentage/amount) based on the completion levels of the project. This may be something that your contractor is familiar with and something you can negotiate to ensure everyone's needs are met.

10% down payment is normal, more is unusual........ and in our state has certain statutory restrictions concerning the feduciary responsibilties of the contractor and performance deadlines for over 10% downpayments, any violations are considered a felony

Forget industry practice. You need to know what the law is in your state, specific to the language that should be in releases and affadivits. This site gives a brief (insufficient) summary on the states' various takes on lien law. http://www.enotes.com/everyday-law-encyclopedia/contractors-liens
Then again, Colin, you're probably Canadian, eh? Sounds like your builder is supplying the necessary forms, but you might want to ask advice from a nearby consumer protection office.
The U.S. laws are all over the map, pun intended. The strongest tend to be in the south, where foreclosure in the 19th century was often a weath-building tool. In Texas, which was settled by people who lost farms in deep south states, property owners can't be liened by subs if they withhold payment of 10 percent of the contract value for 30 days. This protective measure isn't overly popular in GC circles and may not come up at contract time.