ArtBuild template ArtBuild guide · All of Canada
Project cancellation response guide
Start here: what to do when the client cancels the project.
- Version
- 2026.1
- Last updated
- October 24, 2026
Prepared by ArtBuild to help you organise your paperwork. It is general information, not legal advice, and it has not been reviewed by a lawyer. Check the rules for your province or territory before you act.
Part of the Contract Cancellation and Recovery Kit: start with its guide, and download the whole kit there.
Start here
Use this kit when your client cancels or terminates the project before it is finished.
Do these three things today
- Confirm the cancellation in writing (Client Cancellation Confirmation): the date, what work stops and what happens to materials.
- Stop new orders and limit further costs, and record what you did in the Mitigation of Loss Log.
- Record completed work, materials and site condition before you leave (Completed Work Assessment and Site Condition Report).
Homeowner contracts have special cancellation rules in some provinces, notably Quebec. Check before you claim cancellation costs from a consumer.
What is in this kit
| Document | Use it to |
|---|---|
| Project cancellation response guide | Start here: what to do when the client cancels the project. |
| Client cancellation confirmation | Confirm the cancellation in writing: date, stopped work and materials. |
| Termination clause review | Read your contract's termination and cancellation clauses. |
| Completed Work Assessment | Value the work completed up to cancellation. |
| Materials and Purchase Orders Register | List materials and purchase orders, and what can be returned or cancelled. |
| Subcontractor Commitments Tracker | Track commitments to subcontractors and how they are closed out. |
| Cancellation Cost Calculator | Add up cancellation costs, kept separate from completed work. |
| Mitigation of Loss Log | Record what you did to reduce further costs. |
| Project cancellation final account | Prepare the final account after cancellation. |
| Cancellation site condition and handover report | Record site condition and handover when you leave. |
| Final payment request after cancellation | Ask in writing for the final payment after cancellation. |
| Official sources by province and territory | Official consumer and court sources for cancellations. |
Preserve the instruction and stabilize the project
Use this kit after a client asks to cancel some or all construction work. Record what was actually requested before treating the contract as ended. A request to pause, remove a scope item or negotiate an exit may have different consequences. Assign a project lead and legal reviewer; do not assume the full remaining contract price is recoverable.
- Save the original message and attachments with sender, authority and receipt time.
- Confirm the affected scope and proposed effective date in writing.
- Identify work already underway, imminent deliveries and protective tasks.
- Seek authorized instructions for pending orders before incurring avoidable commitments.
- Keep essential site protection and safety responsibilities assigned.
- Preserve photographs, measurements, timesheets, purchase orders and payment records.
- Project lead and contact
- Unclear instruction to resolve
- Next decision and owner
Build a nonduplicated account
| Record | Measure | Exclude from duplicate claims |
|---|---|---|
| Completed work | Measured quantity and reviewed rate | Materials and labour already in that rate |
| Materials | Uninstalled committed items and recoveries | Installed items already in completed work |
| Trade commitments | Remaining evidenced exposure | Trade work already valued |
| Exit costs | Incremental supported costs | Costs already in another line |
| Mitigation | Returns resale avoided costs | Savings already netted in source totals |
Fictional example: completed work is valued at CAD 4,000; that valuation already includes CAD 800 of installed materials. Do not add the CAD 800 again. An uninstalled order costing CAD 1,200 with a CAD 900 confirmed return credit leaves CAD 300 exposure for review, not automatic client liability.
- Use one stable item ID across registers and the final account.
- Separate actual evidence, estimates, disputed amounts and reviewed inclusions.
- Keep tax treatment and payment allocation consistent.
- Log attempts to return, redeploy or cancel commitments even when unsuccessful.
Review before settlement or demand
The calculators organize values and receipts. They do not decide cancellation validity, lost profit, penalties, deposit forfeiture or liability. A qualified reviewer must assess contract terms and mandatory law before a charge is presented as due.
- Record the reviewed basis for each included amount.
- Confirm any notice, refund or construction-rights deadline from an applicable source.
- Agree site access, property custody and continuing protective work.
- Issue a documented account with disputed items visible.
- Record any payment, refund and release separately; obtain review of settlement wording.
- Unresolved legal question
- Reviewer and next action
- Final account version and dispatch authorization
Jurisdiction-specific legal verification remains required. The directory is a limited research starting point and does not cover all Canadian jurisdictions.
Before you act: this document is general information prepared by ArtBuild to help you organise facts and paperwork. It is not legal advice and has not been reviewed by a lawyer for your situation. Rules differ by province and territory and change over time. Check the official source for your project, and for deadlines, liens, court or insolvency steps, speak with a lawyer licensed where the project is located.