Limiting Liability by Contract

Written by F. Richard Gosse. Background The concept is not new – parties committing to provide work or services decide to write down what each expects of the other: a scope of work, a mechanism for payment, some general provision for timelines, changes, and warranties or the like. More sophisticated engagements may (or may not) […]

A Step Back for Holdback Trust Accounts: Amendments to New...

New Brunswick’s Construction Remedies Act (the “Act”) received Royal Assent on December 18, 2020.  The “new” Act, which replaces the Mechanic’s Lien Act, applies to all construction contracts entered into on or after November 1, 2021. On April 1, 2022 sections 37 and 38 of the Act came into force, creating and outlining the requirements […]

Construction Contracts & Why You Should Have One

An ounce of prevention is worth a pound of cure – particularly for construction. Whether it is a new build or a renovation, it is costly work prone to surprises. A properly drafted contract will benefit both the owner and the contractor by providing clarity and certainty. The contract should: Clearly define the scope of […]

December 28, 2022

More Effective Communications Between Parties to Construction Contracts

Successful business is built on clear communications that verify that what I expect from you aligns with what you expect from me. As work advances, that means checking-in to confirm that things have not changed or, more likely, to update expectations because things have changed. The goal is to communicate effectively and to preserve a […]

December 28, 2022

Contracting Out of Delay?

There are too many moving parts to assume that every aspect of a construction project will stay on schedule all of the time. Delay is not only frustrating: it is expensive. Few can afford to have crews or equipment sit idle. Managing interruptions is a necessity and not just a skill, as traditionally delay costs […]

Proposed Replacement to the New Brunswick Mechanics Lien Act Introduced...

The New Brunswick Office of the Attorney General has recently submitted a proposed replacement to the current Mechanics Lien Act, SNB 1973, c.M-6. The new Act, called the Construction Remedies Act, was introduced in the provincial legislature for first reading on June 9, 2020. The proposal is to repeal the current Mechanics Lien Act and […]

January 14, 2020

Technology and the Construction Industry: Opportunity for Evolving Trends in...

Developments in technology Industry is driven, in part, by developments in technology — construction is no exception. Technology in the construction industry brings about positive change — cost effectiveness, increased efficiency and safer projects. However, technology also means new concepts, new products and new processes, all of which bring about new legal risk. The Canadian […]

December 16, 2019

Beyond Prompt Payment: Processes and Options for Timely Compensation

“I’d just like to be paid” It hardly seems fair. You’ve worked all your life gaining credentials, securing a position and building a reputation. You’ve had to create your own opportunities. No one gave you that contract; you had to compete for it and it was awarded to only you. You rallied an able workforce […]

General Holdback Chart

Each province has its own holdback requirements, which makes managing construction projects and contracts across provincial borders complex. For easy reference to holdback details across Canada, see the chart below which includes details for the holdback percentage, holdback period, lien registration deadline, and whether there is provision for an early release, for each province and […]

Who Owns That School? The Crown and the Validity of...

Terra Services Inc. v. Her Majesty the Queen 2018 NLSC 221 As the Province of Newfoundland and Labrador remains a major driver of local construction and development the issue frequently arises as to whether the protections intended by the Mechanics’ Lien Act (“MLA”) can be extended to these provincial projects.  As a general rule, the […]