Imagine this situation: As the Certificate of Practice holder, you have been retained by a client to provide documents suitable for a building permit submission, to assist in the preparation of their application. When the documents are ready for submission, or perhaps once the building permit is issued, the client advises they have decided to delay applying for permit or are postponing the start of construction for an indefinite length of time. What would you do?

Options

This list of options presents some possible answers for your consideration. The analysis helps identify the most appropriate option.

1. If the holder’s scope of work is complete, thank the client for the work, submit final invoicing, and offer to be of service in the future.

2. If the holder’s scope of work is not complete, discuss with the client what the cost of the delay and remobilization will be in relation to the holder’s fees.

3. If the holder’s scope of work is not complete, discuss with the client what work needs to be completed now, what the cost of the delay and remobilization will be in relation to the holder’s fees, when the holder needs to be advised that the project is going to proceed, and submit interim invoicing.

4. If the holder’s scope of work is not complete, discuss with the client what work needs to be completed now, what the cost of the delay and remobilization will be in relation to the holder’s fees, when the holder needs to be advised that the project is going to proceed, and submit interim invoicing. Follow up with the client and the contractor, if there is one, on a regular basis to determine if construction has started or has been resumed.

Analysis and other points of consideration

1. Start by reviewing the terms of your contract:

• Changes to schedule ultimately result in a change to your original contract terms—understanding the effect on your agreement will help assess what steps to take;
• Review the scope of work, including the requirements related to general review;
• Review your progress to date—if the scope of work is not complete, discuss with the client what work needs to be completed now, before work is suspended, what the probable costs of the delay and remobilization will be in relation to the holder’s fees, and estimate the mount of time that will be needed to remobilize; and
• Update your project files (such as reviewing invoicing, among other things) in case the remobilization on the project is quicker than originally anticipated.

2. Is general review required for the project? Things are simpler if general review is not required or if you are not providing payment certification or construction phase field services. In such cases, an indefinite postponement primarily requires cleaning up and archiving the project files, invoicing the client, and paying outstanding invoices received.

3. If the holder’s scope of work is complete, when or whether the project proceeds may only be of interest in how the project is included in a portfolio.

4. If the holder’s scope of work is not complete, then knowing if the project is being cancelled may affect expiry of lien rights, invoicing, and capacity of the practice to undertake other work.

5. If the holder’s scope of work is not complete, and the delay may exceed the lien period or the project may eventually be cancelled, submit up-to-date invoices, and note the date of last supply, potential lien period expiry dates, and any limitations on adjudication.

6. If the holder’s scope of work is not complete, and it includes general review, then knowing when the project resumes is critical, so the start of general review can coincide with the start of construction, for the protection of the public. To this end, holders should be proactive in determining if the work has started, and not simply wait for a call from the client or contractor. Clients and contractors have been known not to call until near completion when they need a sign-off for occupancy. Be proactive to avoid ending up in that situation.

7. If the client tells a holder that the project is cancelled or otherwise terminates the holder’s contract, and the holder has signed a general review commitment, the holder should advise the chief building official in writing that they will no longer be providing general review services for the project.