Kuhn LLP

COUNTING THE DAYS – UNDERSTANDING THE “21 DAY NOTICE” PROCESS UNDER THE BUILDERS LIEN ACT

A builders’ lien can be an effective tool for those in the construction industry, such as contractors, subcontractors, workers, and material suppliers to secure payment. A lien hinders owners from selling their property and can hold up project financing, providing a lien claimant with significant leverage in payment disputes. However, there is a very strict…

Kuhn LLP

TRUSTEE TROUBLES – A NEWLY DEFINED DUTY TO DISCLOSE LABOUR AND MATERIAL PAYMENT BONDS

The purpose of a labour and material payment bond is to provide a form of security to labour and material suppliers on a construction project by giving them a right to claim against a surety (typically an insurance company) if they are not paid for their work by the bond’s principal (such as a general…

Fifth Ave tracks the townhome and condo market

The final results for 2017 are in and new condominium sales and town-home sales are noteworthy.

Written by Fifth Avenue Real Estate Marketing Ltd. In a preliminary excerpt from a report by Fifth Avenue Real Estate Marketing Limited, a residential project marketing and sales agency with 38 years of experience, readers can discover what was selling, where and why in 2017 and the trends that are driving a quick sales start…

Under Pressure: Putting the Job Before the Agreement

Homeowners and general contractors often find themselves under various pressures to complete work and advance the project. The rushed approach that often ensues can cause parties to overlook or postpone settling essential terms with subcontractors. The recent case of Limem Forming West Ltd. v. Stuart Olson Dominion Construction Ltd., 2017 BCSC 1485, highlights the dangers…

Getting Paid and Fixing Deficiencies

It can be very frustrating when a homeowner refuses to make the final payment because of seemingly inconsequential “deficiencies”. However, the BC Supreme Court made it clear in Constructum Developments Inc. v. Hogaboam, 2015 BCSC 1490, that a homeowner may be entitled to correction of all deficiencies before they are obligated to make the final payment. In fact, a contractor’s insistence on receiving final payment before fixing final deficiencies may actually result in a repudiation of the parties’ agreement.

Going Green the Smart Way

Greater demand from consumers and regulators in British Columbia for environmentally sustainable or “green” building practices suggests potential benefits for “green-contractors”. A common strategy is to adopt a labelling system that advertises compliance with defined environmental standards. Common examples of green-labels used in B.C.’s construction industry include the Energy Star label and the Built Green seals.

The Big Issue with Fixed-Price Construction Contracts

For most home owners considering a renovation or new build, price is one of the most important factors in determining the scope of their project, the finishing’s to select and what contractor to choose. For contractors, providing a client with budget certainty can be a significant selling point; thus, the appeal of fixed price construction
contracts.