@ProjectEnd would be better able to answer I would think.

Certainly, at first blush, they are pushing what their current permit allows, but because that re-bar is in essence, embedded in the ceiling of the final below grade level............I'm not sure that they are boldly over the line.......yet.
End of the day it all really depends on your relationship with Toronto Buildings and, more specifically, your inspector. Some are more willing to 'interpret' things on site than others, especially if you're able to prove you have a plan and a schedule that will keep you on the correct side of the law (creative though that plan may be). Some inspectors are willing to work with you, others very much not. Totally depends on who you get and what your reputation as a builder is.
 
End of the day it all really depends on your relationship with Toronto Buildings and, more specifically, your inspector. Some are more willing to 'interpret' things on site than others, especially if you're able to prove you have a plan and a schedule that will keep you on the correct side of the law (creative though that plan may be). Some inspectors are willing to work with you, others very much not. Totally depends on who you get and what your reputation as a builder is.
If I interpret this correctly, then this project should have a good chance of receiving its permit.

A view of the rebar structure today, as viewed from the west side of Duncan Street:
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...approved since 2014, I don't think anyone wants any further delays on this..especially ones caused by slow paper work. >.<
 
September 3 Updates.

1. Shrouding has been installed around the site, including behind the turnstile gate, much eliminating views of the ground level activities on the site (two photos below)
2. Forma construction activities will be restricted over the next couple of weeks to limit impacts on the upcoming TIFF activities. While not shutdown altogether, the site will not be operating as normal. Mid day today, the tower crane was not operating - control cab was empty.
3. A site has been set up on Pearl Street, just south of the Toronto House building, for staging Forma construction supplies and building the rebar cages - photos below.

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