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 […]

Learning from Losing: Debriefing under the Public Procurement Act

Five years after repeal of the Public Tender Act, specific details of the operation of the Public Procurement Act (the “Act”) remain a mystery to many. This is concerning given the Act’s stated objectives of transparency and accountability. Debriefing is a key mechanism to meet these objectives but, based on client and industry interactions, it […]

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 […]

Residential Contractors Beware: Trappings of New Brunswick’s ‘Notice to Owner’...

Background As most in the industry will now be aware, New Brunswick’s Mechanic’s Lien Act has been replaced by the new Construction Remedies Act which applies to all contracts and subcontracts entered into on or after November 1, 2021.  (Note: the “old” legislation still applies to contracts entered into before this date). One of the […]

Change Afoot: New Brunswick’s Construction Remedies Act

New Brunswick’s Bill 12: Construction Remedies Act received Royal Assent on December 18, 2020, and the majority of its provisions came into force on November 1, 2021.  The new Act replaces the Mechanics’ Lien Act, SNB 1973, c.M-6. While the new Construction Remedies Act retains a number of the key elements of the  Mechanics’ Lien […]

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 […]

Force Majeure Clauses and the Doctrine of Frustration: Flattening the...

As governments across Canada continue to impose restrictions on business and travel in an attempt to curtail the spread of COVID-19, parties to contracts, especially service or sale of goods contracts, may find it increasingly more challenging to complete their contractual obligations. In this context, it may be useful to review the legal concepts of force majeure and the common law doctrine of frustration to consider how each may apply in certain contractual relationships.

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 […]