Substantial Performance Settings - Certificate for Payment

To setup or review your Substantial Performance setting in your project follow these instructions.

If you already have a project navigate to your Project Summary and click on the Edit Project Details

Scroll down to the 7 - Terms and Conditions area and the Certificate for Payment section.

Certificate For Payment - Substantial Performance Settings

In Certificate for Payment area of the project details there are 3 options for setting your Substantial Performance. 

• Do no show Substantial Performance
• Construction Act Ontario
• Builders Lien Act - British Columbia

General Discussion Regarding Selections

• Do not show Substantial Performance

  • Definition: This setting, when selected, would disable or hide all features, modules, forms, and alerts related to Substantial Performance within the software for that specific project or contract.
  • Purpose/Use Case:
    • Irrelevance: For very small projects, simple service contracts, or contracts where the concept of "substantial performance" (and thus holdback release based on it) isn't legally or contractually applicable.
    • Early Project Phases: In the initial setup of a project, the focus might not yet be on closeout milestones. This could be a temporary setting.
    • Specific Contract Types: Some bespoke contracts might define completion or payment milestones differently, bypassing the standard substantial performance mechanism.
    • Jurisdictional Differences: While rare for major construction, in some niche areas or international projects, the precise legal concept might not exist, making the feature redundant.
  • Effect: The software would not prompt for substantial performance dates, allow for the issuance of substantial performance certificates, track holdback release tied to this milestone, or include it in project dashboards.

• Construction Act Ontario

  • Definition: This setting configures the software's Substantial Performance module to align precisely with the legal requirements of Ontario's Construction Act.
  • Key Features/Support Implied by This Setting:
    • Financial Thresholds: The software would recognize and potentially help calculate against the 3-2-1% cost-to-complete formula (3% of the first $1M, 2% of the next $1M, 1% of the balance).
    • Certificate Requirements: It would likely provide templates for the Form 9: Certificate of Substantial Performance of the Contract (or equivalent digital version) and ensure all legally required information is captured, such as project description, contract price, owner/contractor details, and crucially, the specific property identification number (PIN) and legal description.
    • Publication: The software might facilitate or remind users about the requirement for publication of the certificate in a Construction Lien Act (now Construction Act) newspaper.
    • Lien Period Calculation: Automatically calculate the 45-day lien period from the date of publication of the certificate.
    • Holdback Release: Manage the release of the basic holdback upon expiry of the lien period, once the certificate is published.
  • Purpose/Use Case: To ensure full legal compliance for projects governed by the Ontario Construction Act, minimizing risk of invalid certificates or improper holdback releases.

• Builders Lien Act - British Columbia

  • Definition: This setting configures the software's Substantial Performance module to conform to the legal framework of British Columbia's Builders Lien Act.
  • Key Features/Support Implied by This Setting:
    • Certificate of Completion Focus: The software would emphasize the issuance of a Certificate of Completion as the primary trigger for holdback release (though "substantial performance" isn't explicitly defined by cost thresholds like in Ontario). The definition of completion under the Act (e.g., project ready for use or capable of completion for less than 1% of the contract price) is the operative one.
    • Holdback Release Period: It would manage the 55-day holdback release period which commences after the date of completion or abandonment of the head contract, or after the issuance of a Certificate of Completion for the head contract or a specific improvement.
    • No Publication Requirement (generally): Unlike Ontario, there's no general requirement to publish the Certificate of Completion in a specific newspaper; notice is generally given to interested parties.
    • Filing Requirements: The software might prompt for or assist with the filing of the Certificate of Completion with the Land Title Office for certain types of projects to clear title.
    • Progressive Release: Support for the progressive release of holdback on larger, long-term projects through annual or phased holdback accounts.
  • Purpose/Use Case: To ensure all statutory requirements for holdback retention and release are met for projects governed by the BC Builders Lien Act, providing clear timelines and documentation for all parties in the province of British Columbia.