Is A Subcontractor Bound By The Arbitration Clause in the Main Contract?
In a judgment delivered on May 6, 2011, Chief Justice Joseph P. Kennedy of the Nova Scotia Supreme Court dealt with a contentious issue relating to arbitration clauses in construction contracts. Is an...
View ArticlePay-When-Paid: When Is The Contractor Not Obliged To Pay The Subcontractor?
Construction Law - Building Contract - “Pay When Paid” The Ontario Superior court recently wrestled with the issue of how to interpret and apply a “Pay When Paid” clause in a subcontract. In...
View ArticleAn Owner Owes No Duty Of Care To A Subcontractor In A Bid Depository System
The Newfoundland and Labrador Court of Appeal has recently held that an owner does not owe a duty of care to a subcontractor arising from the normal operation of a bid depository system: Defence...
View ArticleWhen and How is a Subcontractor Bound by its Tender in a Bid Depository System?
The process by which subcontractors’ tenders are accepted in a bid depository is fundamental to the efficacy of that system. If that process does not effectively bind the subcontractors, then the...
View ArticleWhen Is A Building Contract A Joint Venture?
A difficult issue that may arise between contractors and subcontractors is the nature of their contractual relationship. Are they: independent contractors; or partners; or joint venturers; or...
View ArticleWhen Is The Main Building Contract Incorporated By Reference Into The...
Most standard form building contracts provide for the incorporation of the main contract into the subcontract. For instance, GC 3.7.1 of the CCDC 2 Stipulated Price Contract requires the contractor to...
View ArticleTwo Construction Lien Issues: Architect’s Pro-Forma Certificate Is Invalid;...
The Ontario Superior Court recently decided two important issues relating to construction liens. In Wellington Plumbing & Heating Ltd. v. Villa Nicolini Incorporated, the court held that a...
View ArticleDoes The CCDC Dispute Resolution Clause Require Arbitration?
Most building contracts contain dispute resolution clauses which refer to arbitration. A dispute resolution clause can be mandatory – it can require arbitration – or it can be permissive – it can...
View ArticleCan A Payment Bond Impose Double Payments On A Contractor?
Payment bonds come in various shapes and sizes and it is important to read them carefully before concluding what they bond. They may not just bond the payment obligation of the party obtaining the...
View ArticleThe Traps And Perils Of Limitation Of Liability Clauses
In Swift v. Eleven Eleven Architecture Inc., the Alberta Court of Appeal recently considered the impact and scope of a limitation of liability clause in a consultant’s contract between an owner and the...
View ArticleOntario Court Of Appeal Holds That The Doctrine Of Mistake Does Not Apply To...
In Asco Construction Ltd. v. Epoxy Solutions Inc., the Ontario Court of Appeal recently held that the doctrine of mistake did not apply to an invitation to tender. In doing so, the court provided a...
View ArticleIs A Pay When Paid Clause Applicable If The Contractor’s Account To The Owner...
A pay when paid clause is one of the most contentious clauses in a building contract. Indeed, the clause is outlawed in most circumstances in the United Kingdom and some states of the United States. In...
View ArticleDamage To The Rebar And The Deflection Of Floor Slabs Are Covered Under...
The extent of coverage under Builders’ Risk policies is a matter of continuing debate in Canada. Insurers try to draft policies which do not cover the poor workmanship of contractors, and contractors...
View ArticleAre “Services” Lienable If They Relate To Something That Is Not An...
Whether something put on land is an “improvement” for the purposes of construction and builders’ liens can be a difficult question of fact and law. Usually the dispute revolves around the degree of...
View ArticleContractor Liable To Flooring Subcontractor For Failure To Provide Proper...
An owner is obliged to provide the contractor with proper access to the site for the performance of the work. That principle of construction law is well known. What is less well appreciated is that the...
View ArticleWhen Is The Main Building Contract Incorporated By Reference Into The...
Most standard form building contracts provide for the incorporation of the main contract into the subcontract. For instance, GC 3.7.1 of the CCDC 2 Stipulated Price Contract requires the contractor to...
View ArticleTwo Construction Lien Issues: Architect’s Pro-Forma Certificate Is Invalid;...
The Ontario Superior Court recently decided two important issues relating to construction liens. In Wellington Plumbing & Heating Ltd. v. Villa Nicolini Incorporated, the court held that a...
View ArticleDoes The CCDC Dispute Resolution Clause Require Arbitration?
Most building contracts contain dispute resolution clauses which refer to arbitration. A dispute resolution clause can be mandatory – it can require arbitration – or it can be permissive – it can...
View ArticleCan A Payment Bond Impose Double Payments On A Contractor?
Payment bonds come in various shapes and sizes and it is important to read them carefully before concluding what they bond. They may not just bond the payment obligation of the party obtaining the...
View ArticleThe Traps And Perils Of Limitation Of Liability Clauses
In Swift v. Eleven Eleven Architecture Inc., the Alberta Court of Appeal recently considered the impact and scope of a limitation of liability clause in a consultant’s contract between an owner and the...
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