Introduction In the recent case of Shen v West Continent Development Inc. (BC0844848), 2022 BCSC 462, a dispute arose between homeowners and their contractor in relation to the construction of a new home. In this case, “uplifted” costs were awarded against the contractor as a result of improper conduct during the litigation process. …
The Dog Ate my Homework! The Duty to Keep Proper Records Intro The recent case of Shaheen Custom Homes Ltd. v Brennan, 2022 BCSC 716, exemplifies a situation that homeowners, builders, subtrades, and those alike could encounter in failing to maintain proper records during a construction project. The Facts This dispute…
You’ve Got (or Might Not Have) Mail! Securing a claim through a builders lien can often be the difference between getting paid for your work or eating the cost yourself. However, builders liens expire after a certain duration of time unless specific steps are taken. If those steps are not followed precisely within the time…
That’s Totally Deficient There are at least three certainties in every contractor’s life: death, taxes, and disputes around construction deficiencies. Disagreements over whether work is, in fact, deficient, can be difficult to resolve. It is not uncommon for homeowners to have unrealistic expectations of perfect construction practices. At the same time, there is…
Walk On: The Inadvertent Effect of a Mutual Termination It is not uncommon to encounter a dispute in a cost-plus project over the escalating cost of work. When a dispute arises, how a contractor handles the termination of the construction contract (be it written or verbal) can be vital in determining what types of…
Revoking Building Permits and Being Reasonable When municipal bylaws change, such changes can impact the way a business will make decisions about accepting or rejecting project opportunities. The recent case of Mullany v. Squamish-Lillooet, 2019 BCSC 1581 considered a scenario where a bylaw was amended after an application for a building permit had been…
Fire! Fire! Force Majeure Clauses Particularly since the outbreak of the COVID-19 pandemic, contractors and other companies are increasingly more interested in implementing force majeure clauses in their contracts. A force majeure clause operates when uncontrollable circumstances or events (e.g. war, natural disasters, or extreme weather) prevent a party from fulfilling their obligations under a…
No Room for Mistakes: Or Is There? Strict compliance with the Builders Lien Act (“BLA”) is generally required to ensure that builders liens are enforceable. So, what happens when there are errors on the lien or mistakes with other procedures under the BLA? The case of Toska Woodworking Inc. v Balazadeh-Nayeri, 2020 BCSC 1378…
Standard Form Contracts and the Mysterious Amendment Many contractors appreciate the importance of utilizing written contracts for their construction and renovation projects. Standard form contracts such as those developed by the Canadian Construction Documents Committee (the “CCDC”) can be particularly useful when employed correctly. There are risks, however, with blindly using standard form contracts that…
Double Trouble: Defining the Relationship Before the Bill Doubles When urgent construction work is required, it is all too easy to hastily move forward without properly defining the contractual relationship and terms of payment. The recent case of All Out Contracting Ltd. v. Gourlay, 2018 BCSC 481 addresses a common scenario where work proceeds…