Download EXAC STUDY CARDS - SECTION 4 QUESTIONS and more Exams Social Sciences in PDF only on Docsity!
EXAC STUDY CARDS - SECTION 4 QUESTIONS
To reply lien claimant on info request - Answer - 21 Cross-examination notice for lien claimsnt - Answer - 7 Preservation of lien - Answer - 45 Perfection of lien - Answer - 45 Expiry of lien from perfection action - Answer - 2 years To reply to application for Substantial - Answer - 10+ To reply to application for Certificate Statement of completion - Answer - 10+ To pay after issuance of certificate of completion - Answer - 5 To pay holback - Answer - 45 from a) publish in newspaper, b) completion of contract, or c) contract is abandoned Mail notice - Answer - 5 excl. Holidays Email notice - Answer - 0 (only working hours) 2% interest on delayed payments - Answer - 60 4% interest on delayed payments - Answer - Per annum, after 60 days Submit Schedule of values prior to first application for payment - Answer - 15 To reply to application for typical payment - Answer - 10 Owner to pay typical payment - Answer - 20 from a) application for payment, or b) last day of monthly payment period Owner to deposit holdback monies in joint account - Answer - 10 before end of holdback period To give notice of concealed conditions - Answer - 5 To give notice of delays outside owner/arch. Fault - Answer - 10 (and no extra money!) Architect to decide on claim for a change in price - Answer - 30
GC to act on owner's termination notice - Answer - 5 GC right to terminate work due to delays - Answer - 20 to act on GC's termination notice - Answer - 5 Termination of Broad Form insurance(from start work date) - Answer - Earliest of a) 10 after substantial, b) occupancy or c) 30 of activity ceased Boiler insurance (from start operation) - Answer - 10 after substantial Contractor's equipment insurance - Answer - 1 year after substantial General liability insurance - Answer - 1 year after substantial indemnification for negligence or failure to contract - Answer - 6 years Appoint mediator - Answer - 20 from contract award or notice from any party Party to submit dispute notice after architect's finding - Answer - 15 Party to respond to dispute notice - Answer - 10 Party to request mediator for a dispute - Answer - 10 Party to solve dispute - Answer - 10 Party to refer to arbitration after mediation fails - Answer - 10 Recalibrate cost if construction hasn't started - Answer - 3 months Owner's notice to suspend Architect - Answer - 7 Unpaid period before Architect gives suspension notice to owner - Answer - 45 Owner's notice of arbitration to architect - Answer - 10 Bid period large project - Answer - 6 weeks bid period small project - Answer - 2 weeks Circulate minutes - Answer - 48 hours Deadline for addenda - Answer - 4days Respond to bidders - Answer - 10
Group A (Part 3) - Public Assembly: -- any one-storey building with an unsupported span exceeding 9 m or gross area exceeding 275 m²; -- any building of more than one storey with gross area exceeding 235 m²; and -- all schools, any size Group B - (Part 3) - Hospital, Sanatorium, or Home for the Aged, Institutional: -- any building (excluding veterinary hospital) with a capacity exceeding 12 beds -- any building with gross area exceeding 470 m² Group C - Residential, Hotel or similar occupancy: -- any building containing 5 or more dwelling units -- any building containing 11 or more guest rooms Group D & E - Commercial: -- any building with gross area exceeding 470 m² Group F (F1: Part 3) - Industrial: -- any building with gross area exceeding 470 m² - Answer - What buildings require the services of an architect? CHOP 2.1.10 - Client-Architect Agreements Canadian Standard Form of Contract for Architectural Services Between Client and Architect. It is the accepted national standard contract used by architects. - Answer - What is RAIC Document Six? Guide to the Letters of Assurance in the B.C. Building Code Schedule A - Confirmation of Commitment by Owner and Coordinating Registered Professional Schedule A is a confirmation of commitment by the owner and coordinating registered professional to coordinate design work and field reviews of the registered professionals of record required for the project. The Schedule A is submitted before the issuance of the building permit, to the authority having jurisdiction. - Answer - What is the purpose of the Schedule A? Guide to the Letters of Assurance in the B.C. Building Code Schedule B - Assurance of Professional Design and Commitment for Field Review & Summary of Design and Field Review Requirements The Schedule B is to provide assurance of professional design and commitment for field review, and is submitted by each professional of record, including the coordinating registered professional. The Schedule B is submitted before the commencement of construction activities. - Answer - What is the purpose of the Schedule B?
Guide to the Letters of Assurance in the B.C. Building Code Schedule C-A - Assurance of Coordination of Professional Field Review Schedule C-A is to provide assurance of coordination of professional field review (by the architect). It is submitted after completion of the project, but before the occupancy permit is issued or final inspection made by the authority having jurisdiction. - Answer - What is the purpose of Schedule C-A? Guide to the Letters of Assurance in the B.C. Building Code Schedule C-B - Assurance of Professional Field Review and Compliance Schedule C-B is to provide assurance of professional field review and compliance (by each professional of record). It is submitted after completion of the project, but before occupancy permit is issued or final inspection made by the authority having jurisdiction.
- Answer - What is the purpose of Schedule C-B? BCBC 2012, Divsion C, Appendix A-2.2.7 (not mentioned in NBC) Letters of Assurance are legal accountability documents that are required under the BC Building Code (and presumably other provincial building codes??), intended to clearly identify the responsibilities of key players in a construction project. - Answer - What are letters of assurance? CHOP 1.2.4, p. Injunction - sought when a public body applies to the court for an order restraining a private individual or other body from violating an applicable law. It is often applied to stop an individual or company from constructing a building contrary to regulations, codes or bylaws. A typical example is a "stop work order." Mandamus - an order directing a public body to exercise a public duty, such as the issuance of a building permit. If a municipality refuses to issue a building permit and forces the client to apply to the court for a mandamus, the architect must be sure that all building plans and specifications comply fully with municipal bylaws and building codes.
- Answer - What are two possible legal procedures affecting the construction of buildings? CHOP 1.2.4, p. They can limit what the architect can design on that property. The client should be advised by the architect to check the "agreement to purchase" for covenants if they haven't purchased the property already. - Answer - What are the implications of restrictive covenants registered on title? This depends on provincial or territorial lien legislation. In BC, in order to qualify for substantial performance, the extent of work remaining must be evaluated by the payment certifier (usually the architect) as being capable of completion or correction at a cost of not more than 3% of the first $500,000 of the contract plus 2% of its second $500,000 plus 1% of the balance. As well, for purposes of the statute, an improvement
Computer-generated designs Reports The issuance of the Certificate of Payment constitutes a representation by the architect to the client that based on the architect's field reviews and review of the contractor's schedule of values and application for payment, that the work has progressed to the value indicated. (RAIC Document 6, GC4) - Answer - What does the Certificate of Payment signify? The client must give seven (7) days written notice to the architect that the client elects to suspend the architect's services. (RAIC Document 6, GC8) - Answer - If the client lacks the financial ability or authority to proceed, how much notice must be given to suspend the architect's services?
- If an invoice remains unpaid for 45 days from the date the invoice was submitted, the architect can give 7 days written notice to the client that they will suspend services. OR
- If construction proceeds without a a building permit and building permit officials being dispatched to site.
- If the client takes action which violates applicable building codes or regulations. (RAIC Document 6, GC8.1-GC8.3) - Answer - Under what conditions can the architect suspend services? RAIC Document 6, GC8.
- Letter of termination from the client.
- The contract can be terminated 7 days after the abandonment of the project.
- 1 year passes from the date of certification of substantial performance of the work.
- 1 year from the date of total completion. - Answer - If a project results in construction, the contract between arhcitect and client (Document 6) can be terminated in what 4 ways? CHOP 2.1.5, p. 3 Project records should be retained until after expiry of the limitation period for pursuing a claim for professional negligence. The time period contained in the statutes of limitations varies from province to province (see 2.1.9 CH-30) - Answer - What is the recommended minimum amount of time an architect should retain files on a project? CHOP 2.3.10, Documentation Instructions issued by the architect (sometimes with the assistance of consultants) to clarify or interpret the contract documents. Can also be issued to provide direction to the contractor concerning a problem which may have resulted during the course of construction. - Answer - What are Supplemental Instructions? CHOP 2.3.10, Documentation Change Orders cover adjustments to the scope of work that require a change or changes to the contract price or contract time. The Change Order is the final form which indicates the agreement between the client/owner and the contractor on specific
additions, deletions or revisions to the contract documents. - Answer - What is a Change Order CHOP 2.3.10, Documentation If the contractor's price cannot quickly be agreed to, the architect may issue a Change Directive if the proposed changes are within the general scope of work described in the contract documents. A Change Directive avoids delays and permits work to proceed while negotiations continue over the price of the proposed change. - Answer - What is a Change Directive? CHOP 2.3.11, p. 4 There is no minimum or maximum legal requirement. The architect should schedule site visits at intervals appropriate to the construction. The frequency and timing is left to the judgement of the architect. - Answer - How many field reviews is an architect required to do? CHOP 2.3.10, p. 7 A schedule submitted by the contractor at the start of a project, typically sub-divided by divisions, major sub-trades or quantifiable elements related to the construction. The work performed by the general contractor's own forces, as well as the costs for mobilization, supervision, overhead, and profit, are usually indicated. The value of sub- trade contracts and sub-trade breakdowns assists in determining the appropriate Certificates for Payment and the progressive release of holdback monies for lien purposes. - Answer - What is a Schedule of Values? CHOP 2.3.10, p. 7 & 9 A percentage of the monetary amount payable under a (construction) contract, which is held as security for a certain period of time. The percentage and period of time are based on the provincial lien legislation. - Answer - What is a Statutory Holdback? CHOP 2.3.10, p. 7 & 9 A certificate issued under the appropriate lien legislation attesting that the contract between the owner and the contractor is substantially complete. - Answer - What is a Certificate of Substantial Performance? CHOP 2.3.10, p. 8 To be able to adequately prepare a Certificate of Substantial Performance which is based on this lien legislation. - Answer - When a project is nearing its end and the architect is ready to terminate their services why is it important for them to understand the lien legislation in their province or territory? CHOP 2.3.10, p. 8 & 2.3.12, p. 3 An official document provided by the architect or registered professional to the Authority Having Jurisdiction that the building has been constructed in substantial compliance with the building code, applicable regulations, and the construction documents accepted for building permit purposes. The LOA may be required before an Occupancy Permit is
Comprised of two or more partners. Most provincial associations impose restrictions on whom an architect may form a partnership with (see "Comparison of Provincial Requirements regarding Partnerships" in Chapter 1.1.5)
- Corporations A legal, collective entity authorized by statute to act as an individual business unit. Most provincial and territorial associations of architects have regulations which restrict the share ownership and the qualifications of directors of architectural corporations.
- Partnership of Corporations An architectural practice structured to preserve the individual identity of two or more corporations. For example, you can bring together complementary but differing interests and ownership - one corporation may focus on architectural services, w - Answer - What are the six main types of architectural practice ownership? CHOP 2.1.7, Managing Human Resources The architect must determine whether the off-site work can be under the "care and control" or "direct supervision" (also called "responsible control") of the registered member in order to apply the architects' seal, as required under provincial or territorial Architects Acts. - Answer - What problem may arise if a practice were to allow employees to perform part or all of their work from home, through e-mail or other forms of communication? CHOP 2.1.9 - Risks Related to Management of the Practice All architects are expected to perform their services to a "professional standard of care." This means that architects are required to provide service with the degree of care and skill that would be rendered by reasonably competent architects under the same circumstances and in the same geographic location. An architect who does not meet this standard may be found to be negligent. - Answer - Explain what is meant by "professional standard of care." CHOP 2.1.9 - Risks Related to Management of the Practice Every province and territory has a different statute of limitations. These statutes of limitations usually provide a time limit when a claim can be made. These laws indicate the number of years after which no legal proceeding may be undertaken following a date when the damage (or negligent act) was discovered or ought to have been discovered. However, no time limitation applies to recognition of damage (or negligence) in the life of a building. In other words, professional responsibility and potential liability for each and every project remains with the architect for life. - Answer - What is a statute of limitations? CHOP 2.1.9 - Risks Related to Management of the Practice In the event of a dispute, the architect may occasionally be requested to participate in some form of ADR. Four levels of ADR, increasing in severity are:
- Partnering - a method of dispute avoidance or prevention
- Negotiation - both parties attempt to resolve the matter with some compromises
- Mediation - a neutral person is appointed to act as mediator; mediator does not have to be an expert or provide any decisions, only there to facilitate and assist the two parties at arriving at a compromise
- Arbitration - two or more parties submit a dispute to an independent and impartial arbitrator or arbitration panel, mutually agreed upon by the parties in dispute. The arbitrator makes a final and binding resolution in a judicial manner. An arbitrator must have knowledge of the law and standard legal proceedings. - Answer - What are four levels of Alternative Dispute Resolution? CHOP 2.1.10 - The Architect's Traditional Services Schematic Design Design Development Construction Documents Bidding and Negotiation (Construction Procurement) Construction Phase (Contract Administration) - Answer - What are the 5 phases of an architectural project? CHOP 2.1.10 - The Architect's Fee 25% - 35% of the engineering consultant's fee. In provincial or territorial fee guidelines, percentage fees usually include the fees of structural, mechanical, and electrical engineers - the three common engineering disciplines. For example, the AIBC Tarrif of Fees uses percentages that factor in the three basic engineering fees plus the architect's fee for coordinating their work. - Answer - As a rule of thumb, what is the cost to an architect for coordinating engineering consultants? CHOP 2.1.10, p. RAIC Document Six - Canadian Standard Form of Contract Between Client and Architect (a complete, long form contract that includes a checklist for scope of services; recommended for larger or more complex projects) RAIC Document Seven - Canadian Standard Form of Agreement Between Client and Architect - Abbreviated Version (a shortened version of Document Six; includes an abbreviated version of the scope of services checklist; suitable for small to medium- sized projects) RAIC Document Eight - Short Form Agreement Between Client and Architect (a one- page document used as an interim agreement or "binder" in order to start work while a full agreement is being prepared) - Answer - What are the three contracts used for Client-Architect Agreements? CHOP 2.1.10 - Definitions Construction Cost is the contract price(s) of all Project elements designed or specified by, or on behalf of, or as a result of, the coordination by the Architect, including cash allowances, building permit fees, changes, construction management fees or other fees for the coordination and procurement of construction services, and all applicable taxes, including the full amount of value-added taxes, whether recoverable or not.
The architect is under no legal obligation to speak to a party or a lawyer representing a party other than their client. However, if summoned, the architect will be under a legal obligation to appear in court or before the relevant tribunal. Regardless of who has asked the architect to testify (be it the client or another party), the architect should remember to testify in a manner which is complete and even- handed. The architect's role is not to promote the client's case. - Answer - What should an architect do if they are summoned to testify by a party other than the client? CHOP 1.2.4, Relationships with Authorities No, but if there is a disagreement they may submit an alternate solution for review by the AHJ. Regardless, the architect should always strive to develop professional relationships with building officials and deal with any conflicts in code interpretation tactfully. - Answer - Can an architect trump the Authority Having Jurisdiction when interpreting the Building Code? CHOP 2.3.8 - Construction Documents - Specifications The National Master Specification (NMS) is a comprehensive text base, containing descriptions of every procedure, product or method likely to be encountered. This collection of specifications can be used in developing a project specification by editing contents to suit the requirements of a project. MasterFormat™ is a system of numbers and titles for organizing construction information into a standard order or sequence. For a more detailed description, go to: http://www.raic.org/practice/specifications/nms_e.htm - Answer - Explain the links between the MasterFormat and the National Master Specification (NMS) CHOP 2.3.8 p. Be brief and clear use imperative style address instructions to the contractor avoid repetition, specifying anything which is not to be enforced, "or equal" phrases, "scope" or "scope of work" paragraphs, weasel paragraphs. - Answer - List the rules related to writing a good specification. CHOP 2.3.2, Types of Construction Project Delivery
- Stipulated Price Contract (Design-Bid-Build)
- Construction Management
- Design-Build
- Public Private Partnership (P3)
- Project Management
- Stipulated Price Contract (Design-Bid-Build)
Most common/traditional method for large projects. The owner contracts with the architect and then with the contractor (two separate contracts). The architect administers and manages the contract between the owner and the contractor.
- Construction Management A broad term covering a variety of project delivery scenarios in which a construction manager (CM) is added to the building team at an early stage to oversee such elements as schedule, cost, construction method, or building technology. A CM may be:
- An architect
- A contractor
- An engineer or developer
- And individual or team with specialized training in construction management
- Design-Build The owner contrac - Answer - What are the five main methods of construction project delivery? CHOP 2.3.9 p. The envelope is not sealed Bidder not reviewed all the addenda Not accompanied by bid bond or bid security Not properly signed or sealed Surety bonding requirements not submitted - Answer - Under what circumstances can a bid be deemed non-compliant? CCDC 23, 8.2 & CHOP 2.3.9 p. It is contrary to industry "best practice" to award a contract to someone other than the lowest bidder. Standard "privilege" clauses that state that the lowest or any bid will not necessarily be accepted are not advised and may not hold up to a legal challenge even though the current law of competitive bidding does not necessarily obligate the Owner to award to the lowest compliant bidder. - Answer - Under what circumstances can the owner award a contract to someone other than the lowest bidder assuming all bids are compliant? CHOP 2.3.3 p.15 & RAIC Doc Six, General Conditions 3.
- Obtain approval from the client for an increase in the construction budget
- Re-bid or negotiate
- Modify the construction documents to reduce the construction cost (for no additional fee if the increased bid is not due to extraordinary market conditions or other factors not reasonably foreseeable by or under control of the architect).
- Terminate the contract if the project is abandoned - Answer - When reviewing and awarding construction contracts what should the architect do if the lowest bona fide bid exceeds the construction cost estimate by 15%? NBC Division C, 2.3.1.1.
- Explaination of the required measure that is not to be provided.
RAIC Document Six, GC 8. Termination expenses are computed as a percentage of the total fee earned to the time of termination for the Architect's services and Additional Services, as follows: 20% if termination occurs during the SD phase 10% if termination occurs during the DD phase 5% if termination occurs during a phase subsequent to the design development phase - Answer - Under RAIC Document Six, how much shall an architect be compensated if a project is terminated during the Schematic Design, Design Development, or Construction Documents Phase? RAIC Document Six, GC 8.2 & 8. Fifty-two days. If any invoice submitted by the architect remains unpaid by the client for 45 days or more from the date the invoice was submitted, then the architect may give 7 days written notice to the client that the architect will suspend services. If within seven days of delivery of the notice to suspend services, the client still has not paid the architect's invoice, or the architect and the client have not agreed in writing on terms of payment of the invoice, the architect may suspend services on the project. Note that this differs slightly from GC 3.8.1 in Document Seven which states 60 days. - Answer - Under the conditions of RAIC Document Six, how long is it before an architect can stop rendering services? Guide to the Canadian Standard Form of Contract for Architectural Services - Document Six, p.
- Cover and Table of Contents
- Agreement Form
- Definitions
- General Conditions
- Schedules of Architect's Services and Client Responsibilities - Answer - What are the five main components or parts of Document Six? Document Six, Agreement, A Notices in writing between the parties are to be delivered by hand or by registered post; or if sent by regular post, to have been delivered within five working days of the date of mailing. Notices sent electronically, by email or facsimile are not considered to be reliable for the purpose of official notice. - Answer - According to Document Six, what is the standard protocol for issuing notices; for example, a request by the architect to the contractor to fix any deficiencies or to issue a notice of payment (an invoice)? Guide to Document Six, A18, Example 2 The architect should obtain from the client proof of professional liability insurance from all consultants that the client engages directly. - Answer - If a client engages a consultant directly, such as a geotechnical engineer or a land surveyor, what should the architect do to minimize their liability? Document Seven, 2.
One year. For services required following expiry of this time period, the client shall arrange with the architect for additional services as stated under 2.4 of the contract. - Answer - Under Document Seven, how long after certification of substantial performance do the architect's services cease? Document Six, GC 1.3. The client must notify the architect in writing 10 working days in advance of any arbitration and of any matters in dispute and the extent to which they affect the architect and, if the client has a claim against the architect that arises from the dispute, bring that claim against the architect at the time of the arbitration. - Answer - Assuming the construction contract between client and contractor include provisions for dispute resolution by arbitration, what is the client obligated to do under one of the general conditions of Document Six if a dispute arises? Guide to Document Six, GC 5 The architect owns copyright. Document Nine binds the consultant (independent contractor) to all the terms and conditions of the lead contract (Document 6), including the statement that the work performed on the architect's behalf is owned by the architect. - Answer - If an architect hires an independent contractor (another architectural firm, etc.) to prepare documents (drawings, reports, etc.) and Document Nine is the contract used between the two parties, who owns the copyright on those materials? Document Six, GC 7. No. The client agrees that the architect shall not be liable to the client, in contract or in tort, for the acts, omissions or errors of such consultants whether retained by the architect or the client. - Answer - If a sub-consultant (engineer) is hired by the architect instead of by the client, does this make the architect liable for that consultant's work? Document Six, GC 9. The contract is governed by the law of the province or territory of Canada which is the principal place of business of the architect. - Answer - Under what law is Document Six governed? Document Six, Schedule of Architect's Services, 5. The architect must review any defects or deficiencies which have been observed and reported during that period and notify the contractor in writing of those items requiring attention by the contractor to complete the work in accordance with the contract. - Answer - What is the architect required to do under the Schedule of Architect's Services in Document Six prior to the end of the period of one year following the date of Substantial Performance of the Work? Take all reasonable steps, including stopping work to protect all people on site, then immediately report the circumstances to the consultant and owners. (CCDC 2, GC 9.2.5.) - Answer - If the contractor encounters toxic or hazardous substances on site, what is the contractor obliged to do?
Document Six, which is considered the prime contract, should always be included as part of the Document Nine contract so the sub-consultant is aware of the conditions stipulated in this "parent contract" and knows the roles and responsibilities of the client and architect. A copy of the prime contract, Document Six, including Schedules of Services and Client Responsibilities, are attached and made part of this contract as Appendix 1. - Answer - What should be appended to and forms part of Document Nine? Document Nine, General Conditions 3.2. Seven days. - Answer - Under Document Nine, if the consultant fails to provide services properly or fails to comply with the requirement of this contract, the architect may terminate this contract after how long? RAIC Architectural Competitions, Competition Categories & CHOP 2.1.3, Competitions Endorsed includes a professional advisor, abides by a jury's decision, is endorsed by the appropriate provincial or territorial association of architects or the RAIC, and leads to a commission for the winning architect. Non-endorsed is neither endorsed by the RAIC nor by the appropriate provincial or territorial association of architects. It may or may not have a professional advisor or use a jury for decision-making. It may or may not lead to a commission for the winning architect. - Answer - What are the two categories of architectural competitions? RAIC Architectural Competitions, Stakeholders/Participants In an endorsed competition, the sponsor (client) abides by the jury's decision when announcing the winner. In a non-endorsed competition, there may or may not be a jury, and even if there is, the sponsor is not required to use the jury's decision to choose the winner; the sponsor retains the final decision. - Answer - What is one key difference between endorsed and non-endorsed architectural competitions when choosing a winner? RAIC Architectural Competitions, Competition Methods The three methods are open, limited, and invited. Invited competitions are not endorsed. Open - international competition; falls under the rules and regulations of the International Union of Architects (UIA); open to any architect recognized by the UIA; can be one or two stages. Two Stage Process:
- Architects submit limited designs such as conceptual designs. Sponsor chooses architects who can compete in stage 2.
- Competition includes more developed designs such as schematic design. Limited - restricts the number of licensed architects who can compete by a geographic area or location (eg. BC architects only, Canadian architects only, etc.)
Invited - architect eligibility is on an invitation-only basis. - Answer - Describe the three methods for architectural competitions and identify which one is not endorsed by the RAIC or provincial associations of architects? RAIC Architectural Competitions, Awards and Payments An amount equal to the fee for professional services to undertake that portion of the design. Other prizes should total approximately twice the fee or twice the first prize money, therefore, if there are only two other competing practices, then they will also receive the same amount as the winner, however, if there are more competitors and the sponsor wishes to go 5 deep for prizing, then they will get less. - Answer - Under the RAIC's Guidelines for Architectural Competitions what is considered appropriate compensation for first prize of a competition? For other prizes? RAIC Architectural Competitions, Creating a Competition Budget - Awards and Payments Depends on the provincial association and how the architects are compensated. In BC it is against AIBC Bylaws to compete in Invited (non-endorsed) competitions where all architects are not equally remunerated. (I wasn't able to determine with 100% certainty that it is acceptable for architects to participate in invited competitions if all the architects are compensated equally and fairly. I think it is ok but it may vary from province to province and depend on their bylaws) - Answer - Is it considered professional misconduct to participate in an invited competition? BC Builders Lien Act A holdback is a percentage of the monetary amount payable under a (construction) contract, which is held as security for a certain period of time in a separate savings account. The percentage and period of time are based on the provincial lien legislation (CHOP 2.3.10, Definitions) The holdback amount is determined by the provincial or territorial lien legislation, typically 10% of the greater of the value of the work or material provided, or 10% of any payment made on account (BC Lien Act, Holdback, 4.1) The minimum size is also determined by the provincial or territorial lien legislation. In BC it is $100,000 (BC Lien Act, Holdback Account, 5.8b) - Answer - Define the term holdback and how it relates to lien legislation. How is the holdback amount determined? What is the minimum size of project that a holdback can be used? BC Builders Lien Act & Builders Lien Guide Progressive release of holdback is possible if there is a multiple holdback system in place throughout the construction chain. This system allows for all persons who make payments under a contract or subcontract in a construction chain to retain a 10% holdback. Some former Lien Acts only required a single holdback between the owner and its general contractor. A progressive release of holdback allows for the release of holdbacks retained to sub-contractors when their contracts are completed before the
