Construction Law

By Paul Blanchet

The first step toward a construction contract is usually competitive bidding. The tender documents must be prepared with care by the Owner. There is usually a procedure in the tender documents for obtaining clarification of points that are not clear. All bidders must be informed of every clarification of, or change in, the tender documents. The Contractor must study the tender documents carefully, to determine the risks and responsibilities of the parties. If certain things are not clear, then entering into the contract can be a dangerous business. Who is responsible for the adequacy of the design? What happens if soil conditions produce surprises?

The contract will normally contain provisions for dealing with disputes without delaying the progress of the work. Contractors should be certain that they know what work forms part of the contract, and should follow the procedures provided for dealing with extras. Despite their primary interest in getting on with the job, they should ensure that their attempts to abide by the contract are well documented.

Time is an important element of a construction contract. The parties should keep records of actual progress, and compare them with the schedule on a frequent basis, in order to determine if adjustments need to be made. Some contracts require that notice be given of intent to claim, in certain circumstances. Failure to give such notice can result in loss of the right to claim. In other instances, failure to act in a timely manner can erode one’s bargaining position and weaken the claim, (usually) from the Contractor’s side, or one’s defence, (usually) if an Owner. Good record keeping is particularly important when making or defending against a claim for delay.

The best way to participate in a construction contract, whether as an Owner or as a Contractor, is to do so being fully aware of your rights and responsibilities.

Lawyers can, of course, be helpful in these situations. They should preferably be consulted at an early stage, before matters have degenerated into a dispute. Good advice sought in a timely manner can help prevent disputes.

Our firm is pleased to provide this advice to clients in all areas relating to both the construction contract and disputes which arise from the construction process. If you require advice on a construction law matter, please contact who combines both legal and engineering experience in his practice.