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Document Retention
DOCUMENT RETENTION: Keep or Toss?
In the event of a claim, what will you need, what will you not need, and what will you wish you didn’t have?
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Many of our clients are tempted to “clean house” every now and again, and this is a good practice. However, there are both legal and business considerations around record retention. Here we break the question of how long to retain project records into six parts.
Documents to Retain for the Lifespan of the Project: There are some documents that are helpful to keep for the entire life of a completed project. These include:
Requests for Proposals (RFPs) and responses
Professional service agreements, with amendments
Construction Documents and Record Drawings
Certificates of Substantial Completion
Records of final payment
Documents to Retain for your Defense: Most states have statutes of limitation and repose. These are the periods of time during which a party may make a claim against you. In Pennsylvania, the statute of response for a land surveyor is 12 years; and the statute of limitations is 4 years. You should keep project records long enough to help defend you in the event of a claim. Your attorney can help you with guidance on this.
Documents to Retain for Contractual Compliance: Some contracts require you to maintain documents for a specific period of time. Read your contract and follow those requirements.
Litigation Holds: If you are sued, your attorney will give you some guidance about document retention. Follow that advice closely, since spoliation of evidence is a punishable crime in many states.
Other Business Records: Employment, tax, licensing, and similar records come with their own set of rules. Check with your accountants and attorneys for guidance.
Key Takeaway: Your team of advisors should cooperate in providing you with guidance. Some records—like internal notes—may be better to purge! An insurance broker who understands your business is a key part of your advisory team. When you’re a land surveyor, KLEIN is that broker.
Mark Amirault, Klein Agency, LLC
