Under CSI’s project delivery and contracting principles, the contract documents are only one part of the legal framework that governs construction. Regulatory approvals and permits are a separate, critical requirement that must be satisfied before construction begins, regardless of contract award or the owner’s desire to proceed.
Key CSI-aligned concepts:
Building codes and other regulations are enforced by authorities having jurisdiction (AHJs)—in this case, both city and state agencies.
The owner, often via the design professional, must obtain the required permits from all AHJs before construction activities are started.
Contract award to a general contractor does not authorize construction to proceed without permits; doing so exposes the owner and contractor to violations, stop-work orders, penalties, and liability.
Therefore, the correct advice in a CSI-consistent framework is:
Construction may begin only after both city and state permits have been issued. (Option D)
Why the other options are incorrect:
A. Construction may begin immediately … if a safety manager is present and excavation is avoided.Safety management and the type of work do not override permit requirements. Work without required permits is typically prohibited regardless of safety measures.
B. Since the state approval is more critical … proceed after the state permits are issued.CSI acknowledges that all applicable jurisdictions must be satisfied. One jurisdiction is not “more critical” such that the other can be ignored. If both city and state approvals are required, the project must have both before construction starts.
C. Since the city approval is more critical … proceed after city permits are issued.Same issue as B. If both city and state have regulatory authority, both sets of permits are required; neither is optional or subordinate in this sense.
CSI-aligned references (no external links):
CSI Project Delivery Practice Guide – sections on regulatory requirements and authorities having jurisdiction.
CSI CDT Study materials – discussions of permits, code compliance, and the relationship between AHJ approvals and the start of construction.
Typical General Conditions of the Contract as discussed in CSI materials – provisions requiring compliance with laws, codes, and permits.
