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As soon as being known, however sooner the better. In general, it is done through a notification followed by a formal Claim along with all supporting documents / facts substantiating the Claim with its impact in terms of (cost and/or time).
Claim be identified to the client before the situation occurs and that is in interest of the project.
In a Construction Contract, all Claims shall be notified to the Client as soon as it is identified. The Client shall be given the opportunity to know the situation and also the opportunity to mutually decide the future course of action and applicable compensation.
If you inform later, the client could come up with some argument that the impact would have been much less if they would have been informed.
So, it is always better to inform the client as soon as possible and take them into confidence before proceeding to work which will raise the claim.
It is important, necessary and significant to identify officially/contractually a potential claim to the client. When the claim element has to be executed, to minimize any greater impact on the schedule/cost, again the client must be formally notified. Definitely, if the claim has not been finallized earlier, it must be concluded before transmittal of the Work/Quality closing documentation and contract close-out.
Proceeding as indicated above enables an easier solution to any founded claim, whereas both parties feel proficient and respected.
Depending on the country and contract applicable law, a Lien on the Property may be a legal countermeasure to assist the contractor in finalizing unsolved claims/matters with the client, after contract close-out but, obviously, everything must be dealt with and resolved before the administrative close-out. That approach is rougher and unpleasant to both parties and moreover will affect any future professional relations.
The typical answer is the last choice because there are some things the client needs at a time when it can not be executed outside the scope of the contract because in this loss on the service provider to the customer it is good to agree on everything in the contract
c) before contract close-out
b) While the matter is being executed
