FAQ.27

Question:

I received a form from my client’s bank – it looks like a Certificate for Payment but has some other clauses in it that seem like maybe I shouldn’t be signing it – like - I certify the value to complete the work is … and - All work done to date meets all applicable laws, codes, by-laws. Should I sign this?

Answer:

No. Although these forms may look reasonable at first glance or at least might if you changed a couple of words, they are extending your liability beyond what is reasonable and to parties with whom you do not have any contractual relationship. Lenders, and surety & bonding companies will look to their document to rely upon in the event there are any problems such as contractor default or bankruptcy.

The standard forms which architects use have suitable wording such as - based on my periodic visits, to the best of my professional opinion. They do not state that you certify that construction meets all laws, or that you can attest to how much it will cost to complete, for example if another contractor had to be brought in.

Architects should also consult their legal counsel or insurance providers in these situations.

References:

OAA Practice Tip PT.17 Lending Institutions – Architect’s Certificates.