One of the big questions in tendering law in recent years is how an owner can protect themselves against unsuccessful bidders when they want to accept a non-compliant bid. This question has been making its way through the legal system in Canada and the Supreme Court of Canada has recently set out a new test.…
If you want to limit your liability, you must have strong contracts. That is what a recent decision of the BC Supreme Court told an unfortunate home inspector, handing him a judgment in the amount of almost $190,000. FACTS In the case, two individuals (the “Purchasers”) entered into an agreement to purchase a house in…
When disputes over alleged deficiencies arise during construction, the paying party will quite often refuse to pay any further money until the deficiencies are fixed. When this occurs the contractor (or subcontractor) will usually refuse to do any further work until they are paid. The result can be like trying to solve a murder mystery game of…
As the economy ebbs and flows, the status of current construction projects may fluctuate and work may stop for 30 days or more at some points. In these circumstances it can be difficult to know whether or not a project will be completed or whether it has been abandoned. This can have a significant effect…
Can Government Scoop Builders’ Lien Holdback for Tax Claims? Who gets the holdback monies in a face-off between Builders Lien claims, a Contractor’s back charges and a claim against those funds by Canada Revenue Agency (CRA)? A recent British Columbia Supreme Court case, heard on September 11-12, 2008, does much to clear up the area of…
Suppliers, subtrades and others in the construction industry often question the potential benefit of filing a Builders Lien. Owners and Owners, on the other hand, are often faced with having to obtain discharges of the liens in order to obtain financing or construction draws. A recent case from our Court of Appeal highlighted issues that arise when…
You buy insurance to protect you if things go wrong. Last Thursday the BC Court of Appeal confirmed that insurance does not defend builders against many claims arising due to negligent subtrades. The Court held that Progressive Homes Ltd. (“Progressive”), and hundreds of other builders in BC, did not have the umbrella insurance they thought they…
With the Canadian dollar increasing in value in comparison to the American dollar, many British Columbian construction companies are looking to purchase equipment in the United States. A recent case illustrates the need to specify in the contract what country’s law will apply to the contract and in which country any dispute will be heard.…
Over the past 25-30 years the tendering process has undergone an evolution that has seen some dramatic shifts in the legal analysis. This started in 1981 with the Supreme Court of Canada’s decision in Ron Engineering case that established the Contact A (the contract formed by the tender document and responsive bid) – Contract B…
In the last issue we considered the recent decision of the BC Court of Appeal in Tercon Contractors Ltd. v. British Columbia (“Tercon”), which held that an owner could accept a non-compliant bid because the exclusion/privilege clause was drafted to allow for this possibility. This was not good news for general contractors as it gives…