It is well known in the construction industry that a separate lien claim exists against the holdback fund created by section 4 of the Builder’s Lien Act (the “Act“). Liens against the holdback, commonly referred to as “Shimco liens”, provide an important source of security for unpaid subcontractors where the time period for filing a lien…
Frequently, an important step before work begins is to determine what the price will be or how it will be calculated. The case of Kareway Homes Ltd. v. 37889 Yukon Inc. is a good example of how failing to clearly address this issue in a written contract can result in serious financial consequences for the contractor.…
In cases involving the discharge of a builder’s lien, a critical question often becomes whether or not the lien was filed within the applicable time period under the Builder’s Lien Act. A recent case from the BC Supreme Court suggests that a trade may still file a lien even where it has failed to work on…
Trying to hammer out all the little details before a construction project begins can seem like an unnecessary barrier to getting the job done. At times, it may even be tempting to dispense with a written contract altogether and just focus on the big picture, hoping that all the details will fall into place later…
Many companies carry on business under multiple corporate structures. This can make it difficult to determine exactly who you are contracting with. This affects who is actually responsible for doing the work. It can even deprive you of your of legal remedies if the deal goes sour. FACTS Park v. K.S. Mechanical Ltd. involved an appeal…
In the rush to get a construction project underway, significant pressure may exist to close deals quickly. Sometimes, it might even appear necessary to sign a contract before all the terms have been finalized in a detailed written agreement. Although this practice may increase expediency in the short-term, a recent decision of the Alberta Court…
There can be many side agreements and understandings during the course of construction. If you do not properly document them, however, they may not be enforceable. Facts: Chateau Granville Partnership v. Chateau Granville Inc., et al. involved a dispute between the owners of the Chateau Granville Hotel (“Chateau”) and the construction manager it hired for a renovation…
When negotiating a building contract, it can sometimes be difficult to identify the exact moment when a deal has been reached. Sometimes, a person may feel like a “handshake deal” is not a deal at all, but simply a friendly conversation. In Rivera v Metropolitan Construction Ltd., the Court provided some guidance for determining when a legally…
It’s not uncommon for suppliers in the construction industry to sell supplies on account. When they do this, a personal guarantee is often required. A recent case shows that despite some novel arguments, the principals of the company were personally liable for the debts of their company. Facts: In Convoy Supply Ltd. v. CDN Roof Doctor…
Submitting a bid for a project becomes a binding contract the moment it is submitted to the contractor/owner for consideration. Even if your bid on a project is too low, you can be stuck with it. Depending on the project and the value of the contract, a careless price calculation in a bid could be…