The OAA’s Practice Advisory Services has received emails and calls over the summer around closing outstanding building permits.
From a good practice standpoint, if it is in your scope of work, certificate of practice (CoP) holders should submit the documentation required to close a building permit or obtain an occupancy permit in a timely manner. It is recognized that circumstances may arise that may disrupt the orderly conclusion of a project, resulting in documents not being submitted. It is also possible authorities having jurisdiction (AHJ) may misplace documents that have been submitted. Regardless of the cause, there are many permits that remain open.
Which scenario/risks are you facing?
If your practice is considering undertaking the work to close open permits, it may be helpful to categorize the possible scenarios. The following categories are commonly encountered and include instances where the project was done:
- by your practice and the supporting documents and project knowledge are readily available;
- by your practice and the supporting documents or project knowledge are not readily available;
- by another practice still in existence;
- by another practice that still has a valid contract for the project;
- by another practice that no longer exists; or
- by another practice that no longer exists, but whose portfolio was taken over by a successor practice;
There are also examples where the project was done, but has been demolished or removed as part of subsequent permitted projects or some of the work has been demolished, removed, or altered by subsequent unpermitted work.
Each of these categories requires a different approach and level of effort by various parties and may also result in varying levels of risk for your practice.
In all cases, close communication with the client, the project team of the time, and the AHJ about what is required and what is possible will be important. Depending on the scenario, you may need to consider liability issues and consult Pro-Demnity and legal counsel.
Depending on the category, the following questions may need to be answered before proceeding with supporting a client in closing a permit for a project completed a while back:
- What documentation is the municipality/AHJ missing?
- Was the missing documentation ever prepared or submitted?
- What is the last documentation (e.g. site report) on file with the AHJ?
- In the case you were not the original practice, is assistance available from the original practice or a successor?
- Which engineering disciplines will need to be involved?
- How much and what type of construction was done after the last documentation was prepared?
- Was anything concealed after the last documentation was prepared?
- Is the client willing to facilitate an assessment of the current condition (i.e. selective demolition)?
- Is the client willing to do selective demolition to reveal concealed work or verify compliance of existing construction?
- Will access to the premises be allowed during normal business hours or will site verifications need to be done after hours?
- Will final reports, approvals, or licences be required from other AHJs (e.g. Ministry of the Environment, Electrical Safety Authority, Ministry of Health, etc.)?
- Where there are multiple permits to be closed, what is the best order to attempt to have them closed (e.g. chronological vs. reverse chronological, small scope vs. large scope, isolated scope vs. overlapping scope)?
Considerations Around Fees, Scope, and Liability
It should be explained to the client that the level of effort needed to close a permit cannot be determined in advance due to factors beyond the CoP holder’s control such as site access, the cooperation of other practices, and whether the AHJs will accept the documentation that is readily available or will require additional effort.
CoP holders should include appropriate disclaimers in any reports or documentation prepared. Such disclaimers may include reliance on the accuracy of documentation previously prepared/submitted by others, limiting responsibility to what was visible during any assessment of existing conditions, and identification of which construction work remains (i.e. incomplete or non-conforming).
Consider the application of the following resources, which include OAA Practice Tips to the work of closing out building permits as well as an article from Pro-Demnity:
To discuss a particular situation, contact the OAA’s Practice Hotline to talk to a Practice Advisor.
This article originally appeared in an issue of Practice Advisory—a newsletter developed by the OAA’s Practice Advisory Services team, which offers numerous resources for both members and the public.
The OAA does not provide legal, insurance, or accounting advice. Readers are advised to consult their own legal, accounting, or insurance representatives to obtain suitable professional advice in those regards.