A lot of members wonder for how long they have to retain their project files. The answer is not simple, and depends on a number of factors. In fact, there is no single answer. It often comes down to which documents for what purpose.
When it comes to document retention, practices should ask themselves: Why retain documents at all? Which documents/items should be retained? How long to retain them?
Becoming familiar with archival requirements not only helps to have a complete portfolio of what the firm has worked on over the years for future business development/proposals, but also is invaluable if claims occur.
Here are several lists to start a conversation in-house, as well as provide a good refresher on some applicable laws and regulations that must be followed.
Why retain documents at all?
- marketing when pursuing new work;
- possible future renovations or additions to the project just completed;
- extracting details, solutions, or specifications for use on future projects;
- ability to defend against insurance or other claims;
- complying with contractual terms and conditions;
- complying with applicable law; and
- for posterity (most projects won’t fall in this category).
Which documents/items should be retained?
- proposal submissions;
- architectural service contracts;
- drawings;
- specifications;
- reports;
- communications;
- submissions: samples, shop drawings;
- agreements: client contracts, consultant contracts, and construction contracts;
- change documents and supplementary instructions; and
- financial records: payroll, consultant costs, and reimbursable expenses.
How long to retain?
- contractual requirements—especially beware of any provisions that survive the termination of the contract;
- Limitations Act requirements—refer to Practice Tip PT.06;
- insurer’s requirements; and
- Revenue Canada requirements.
Does the project still exist? Has the project been demolished or replaced by subsequent work? If so, the chances of a claim arising are greatly reduced.
Depending on which documents are being retained for which purpose, the length of retention may be until the project contract is completed/terminated, seven years, 15 years, forever, or for some length of time in between.
Unless the project was appropriately archived, it may not be practical to dispose of some material when it is no longer required, because the cost to ferret it out of the archived files may exceed the cost of continuing to store it.
Members should seek legal advice before deleting or destroying any documents/items that may be governed by applicable law.
Reference should be made to: