If you read our earlier article on Final Acceptance Certificates, you already know the
surprising part: across Edmonton and surrounding municipalities, older developments often
have securities, deposits, or letters of credit still sitting with the city years after construction
wrapped up.
Knowing the money may be there is one thing. Actually recovering it is another. This article
walks through the practical steps developers, builders, and property owners can take to
investigate an old project and move it toward release of held funds.
First, Understand What You Are Trying to Recover
Before chasing anything, it helps to know what form the held funds may take, because each
is released differently:
Cash securities or deposits — held directly by the municipality and refundable once
obligations are met.
Letters of credit — issued by your bank in the municipality’s favour; these tie up your
borrowing capacity until released, so recovering them has value even when no cash
changes hands.
Performance bonds — posted to guarantee construction was completed to standard.
Maintenance securities — held through the warranty or maintenance period to cover
deficiencies that surface after construction.
Recovering a letter of credit can be just as valuable as recovering cash, since it frees up
credit your business may have been carrying for years without realizing it.
Step 1: Locate the Original Development Agreement
Everything starts with the agreement signed between the developer and the municipality. It
defines what infrastructure was required, what securities were posted, the length of the
maintenance period, and the conditions for release.
If the original developer has changed hands, dissolved, or sold the project, this document
may take some digging to find. Check corporate records, old project files, your lawyer’s
archives, and the municipality’s own records.
Step 2: Confirm the Current FAC Status With the Municipality
Contact the municipality’s engineering or development services department and ask them
to confirm, in writing, the current status of the file. You are trying to establish:
Whether a Construction Completion Certificate (CCC) was ever issued
Whether the maintenance period has expired
Whether a Final Acceptance Certificate was issued
What securities or letters of credit are still on file
What deficiencies, if any, remain outstanding
Get this in writing. A documented status from the municipality becomes the foundation for
everything that follows.
Step 3: Identify and Resolve Outstanding Deficiencies
This is usually where old files stall. The municipality will not release securities while
deficiencies remain open, and on legacy projects those deficiencies are often minor, fixable,
or in some cases no longer applicable.
Common holdups include sidewalk settlement, asphalt issues, landscaping that failed to
establish, grading or drainage concerns, utility or valve issues, and missing as-built
documentation. An engineering review can determine which items are still valid, which have
effectively resolved themselves over time, and which simply need to be re-inspected and
signed off.
Step 4: Arrange Re-Inspection and Sign-Off
Once any genuine deficiencies are corrected, the municipality needs to re-inspect the work
and formally close out the items. Coordinating this inspection, supplying any missing
documentation, and getting written confirmation that items are cleared is what moves the
file from “open” to “ready for release.”
On older projects, this often requires manual records review on the municipality’s side, so
patience and persistent, well-documented follow-up matter.
Step 5: Request Formal Release of Securities
With deficiencies closed and the maintenance period confirmed expired, you can formally
request release of the held securities or letters of credit. The municipality issues the Final
Acceptance Certificate, accepts long-term ownership of the infrastructure, and releases the
remaining funds back to you. If a letter of credit is involved, make sure your bank receives the municipality’s release confirmation so the credit facility is actually freed up on your end.
Common Obstacles and How to Get Past Them
A few things tend to slow legacy recoveries down:
Lost continuity. Staff turnover at both the municipality and the development company
means no one remembers the file. A clear, documented paper trail solves most of this.
Archived records. Older projects may predate digital tracking and require manual
retrieval. Build in time for it.
Ownership changes. If the project changed hands, you may need to demonstrate your
standing to claim the funds. Corporate and legal records establish this.
Ambiguous deficiency lists. Old deficiency notes are sometimes vague or no longer
relevant. An engineer can help separate real outstanding work from items that no longer
apply.
When It Makes Sense to Bring in Help
If a project is recent and well documented, you may be able to handle release yourself.
Legacy projects are different. When records are incomplete, ownership has changed, or
deficiencies are unclear, the coordination between municipal records, inspections, and
engineering sign-off is where most of the time and value sits.
How Bolson Engineering Can Help
At Bolson Engineering, we assist clients with municipal infrastructure review, subdivision
closeout, and the engineering coordination involved in resolving older Final Acceptance
Certificate files. Our team can review legacy development agreements, confirm FAC status with the municipality, assess outstanding deficiencies, coordinate re-inspections, and help move
your project toward the release of securities or letters of credit still being held. If you
suspect an older development may still have funds sitting with the city, we can help you find
out and work toward recovering them.
