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…
The Latin maxim “caveat emptor” or buyer beware is a warning that strikes fear into the heart of many a homebuyer. It is also the principle behind much of the law relating to potential construction defects in a property. Generally we accept that it is the buyer’s responsibility to satisfy themselves about the quality of…
Within the construction industry context, an “estimate” is defined as “a statement of the approximate charge for work to be done, submitted by a person or business firm ready to undertake the work” by www.dictionary.com. By definition, an estimate is approximate, so the question begs: does a contractor have some leeway to charge more than…
Those involved in construction projects often face the necessity to remove liens filed pursuant to the Builders Lien Act. Sometimes this is to enable mortgage funds or construction draws to flow, and other times in order to simply remove inflated, out of time, or fraudulent liens. Despite this common situation, it seems rare that people…
A recent British Columbia Court of Appeal decision highlighted what is acknowledged to be a frequent problem in construction cases and “one that has admittedly no easy solution”. The problem: how to measure damages for breach of a construction contract; in this case, where deficiencies are alleged? FACTS A contractor built a home for an…
Contractors, business people and professionals alike often spend sleepless nights worrying about the potential of being sued and dragged through expensive litigation because of actions taken by themselves or some employee, even from a long time ago. Besides buying insurance, the effectiveness of which may be questionable in some circumstances, and trying to be careful,…
This time of year brings plenty of opportunity for clinking of glasses and sharing a sip (or two) of your favorite Christmas cider with customers, fellow workers, friends or family members. Most of us are responsible enough to avoid allowing our guests to become part of this season’s statistical carnage, but what happens when a…
A recent case identified a common problem in construction: doing work for friends. When skilled construction people agree to help out friends they need to remember that there are the same (and even greater) risks involved as when they are working commercially. Forget the basic business practices at your peril. FACTS Mr. P was a…
What happens when a contractor (or subcontractor) decides to quit that business altogether or stops buying liability insurance? Does uninsured liability still loom? Must the contractor maintain insurance forever? Or is the fact that he had insurance when he was conducting his business enough to protect him? As with most answers in things legal… it…
As most experienced general contractors and subtrades know, the tendering process creates rights and obligations that must be taken seriously. A recent case involving a dispute over the awarding of a steel work subcontract illustrates well the legal pitfalls of not giving a low bidder the contract (or subcontract in this case) on the basis…