Termination for Convenience Clauses Often Inadequate
Termination for convenience clauses often get short shrift in negotiations, perhaps because termination seems like an unlikely prospect at the early stages, when resources are being committed to a...
View ArticleThe Problem with Unit Prices and Stipulated Price Forms
A Common MistakeA surprisingly common mistake made by owners and contractors alike is to use a stipulated price contract form for a unit price contracting arrangement. That is, I frequently see...
View ArticleCan a Lien Include Damages Due to Delay?
In Krupp Canada Inc v. JV Driver Projects Inc, 2014 ABQB 259, Master Robertson addressed the question whether damage claims – in particular delay claims - can be included in builders’ liens. The issue...
View ArticleProblems with Posting Security to Discharge Liens
Posting Alternate Security is Standard PracticeIt is common practice for an owner or general contractor to put up cash or a lien bond in order to discharge a lien from the land title. This is often...
View ArticleThe Importance of Keeping a Diary
Construction disputes often get resolved in favour of the party with the best records. Right and wrong may have little to do with it when only one party has the advantage of a daily record to support...
View ArticleNo Setoffs Allowed Against the Statutory Lien Holdback? Think Again
Confusion Over Lien RightsLien claimants – and their legal counsel – sometimes make the mistake of believing they can compel the project owner to pay the lien fund into court (and out again to the lien...
View ArticleLiening the Landlord for Tenant Improvements
When a tenant requests work from a contractor, there are two ways in which the registered owner of the lands in question can be called upon for payment, even though the registered owner was not the...
View ArticleThe Top Ten Things That Go Wrong With Lien Registration
Missing the lien deadline – This is number one because lien rights evaporate if a lien is not registered on time. It is not always straightforward to determine the lien deadline. The Alberta...
View ArticleTop 3 Ways Project Documentation Fails
Documentation is key to resolving construction disputes. Was there a change in site conditions? What instructions were given on site? Was a change approved? Was the owner given notice? This is just a...
View ArticleKeeping Construction and Tendering Contracts Separate
Tender documents are often "living" documents. A problem arising on one project prompts a construction owner to insert a new contract term to address the problem on subsequent projects. This is good...
View Article"Incorporation by Reference" – More Dangerous Than it Sounds
It is common, almost universal, to find a clause in a construction subcontract that incorporates the prime contract by reference. However, the effects of such a clause can vary greatly. Too often,...
View ArticleCourt Denies Coverage for Property Damage “Connected” to Faulty Workmanship
The Alberta Court of Appeal has issued an important decision that narrows the scope of all risks insurance coverage. The court was grappling with the question whether damage to a project resulted from...
View ArticleArbitration – Quicker, Yes. Cheaper, No
I often get asked, is arbitration preferable to going to court? While the correct answer depends on the context, there are four key considerations that guide my response: Efficiency Arbitration is...
View ArticleMischievous Liens
From time-to-time we see lien legislation abused or distorted for mischievous purposes. Anyone who deals with liens on a regular basis has witnessed such abuse. Anyone involved in the lien process –...
View ArticleMore Frequently Asked Lien Questions
I am frequently asked by owners, contractors or construction managers, which subcontracts or material supply contracts are subject to lien holdback requirements? There is an easy answer to this...
View ArticleArbitration Clauses and Lien Rights
Lien rights can’t be enforced through arbitration, but many construction contracts provide for mandatory arbitration. In a recent decision, West Coast Installations, Inc. v. Frazier Industrial Co., the...
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