Can a Beneficiary Be Prohibited from Drawing on a Letter of Credit?
Letters of credit are occasionally used in construction contracts to secure the performance of a contractor’s obligations to the owner. They are instruments created at the request of a customer (i.e.… Read More
An Uncertain Fate: Changing Principles of Termination for Convenience
A “termination for convenience” clause is the big, red, ejector seat button that allows a party, typically an owner, to exit its contractual relationship. The presence of such a clause… Read More
In the recent decision of Interpaving Ltd. v. The City of Greater Sudbury (2018 ONSC 3005), the Ontario Superior Court of Justice Divisional Court reaffirmed the right of a public… Read More
Duty to Disclose Labour and Material Payment Bond
On February 15, 2018 the Supreme Court of Canada released its decision in Valard Construction v. Bird Construction. The Court found that in certain circumstances, a trustee has an obligation to… Read More
Modernization of Manitoba’s Builders’ Liens Legislation – Will Prompt Payment Protections be Coming to Manitoba?
Ontario has recently conducted an extensive review of its Construction Lien Act, which generated a number of recommendations for updating and modernizing the statute. The Ontario efforts left many in… Read More
Recent Manitoba Decision Considers Competing Claims Against Project Funds Held by Owner
What rights do subcontractors, bonding companies and owners have to project funds when a general contractor is insolvent? A recent 2017 decision from the Manitoba Court of Queen’s Bench (Manitoba Housing… Read More
Are You Obligated to Disclose a Labour & Materials Payment Bond?
Does a general contractor have a duty to proactively disclose to subcontractors and suppliers that there is a labour and materials payment bond through which they may benefit? A recent case… Read More
Things Were Going So Well: Dealing with Disputes
As the saying goes, “The road to success is always under construction.” Inevitably in the construction business one dispute or another will arise – no matter whether you’re an owner,… Read More