Construction Law

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When building residential or commercial premises, it is important to keep in mind that it is often necessary to deal with a series of contractors or subcontractors. Often arrangements are made on a verbal basis and when problems arise it tends to be difficult to interpret the actual intentions of the parties. Putting the agreements in writing helps to define the parties' rights and obligations, however written agreements can sometimes be vague and may not cover every potential dispute.

North & Company is able to assist its clients in preparing written agreements and pointing out areas of possible disputes. Our extensive experience in the construction law area allows us to provide our clients with detailed information on rights and remedies regarding construction projects. North & Company is also able to provide advice regarding the financing of construction projects. Financing documents for construction projects become very complicated and one must ensure their rights are protected. These are often situations involving land where mortgages are required to be registered at the Alberta Land Titles Office.

When a dispute arises the parties involved often find that they have very differing opinions on the obligations and rights under the initial agreement. Those who have contracted to have the construction completed often feel that they have not received the value in the products or services which they expected to receive under the agreement. Those contractors who have completed the work often have difficulty in collecting payment for the services and materials which they have supplied.

The Builders Lien Act is provincial legislation in Alberta which governs the rights and liabilities of contractors, subcontractors and owners. Generally the owner of the construction project is required to withhold a builders lien fund of 10% of the services and materials supplied for the construction project. The fund is withheld for 45 days from the last date at which the services or materials were supplied to the project. All contractors and subcontractors have a claim to the builders lien fund and can register their claim pursuant to the Builders Lien Act against the Title of the owner.

It is very important when contemplating construction or renovations on residential or commercial premises to give forethought to how the project will be managed and the rights and remedies in the event that any potential dispute arise. At North & Company we would be more than happy to discuss your concerns with you at your convenience.

Thank you for your interest in visiting our summary on construction projects.