Home Builder Canada Readers survey
NP_lineHome Builder Magazine New Products Online
Computers, Educational

Electrical & Mechanical
Finishes & Surfaces
Kitchens & Baths
Landscape & Design
Speciality Products
Tools & Equipment
Windows & Doors
New Products home

External Links: Associations & Governments. Builders & Renovators . Manufacturers & Suppliers

Home . About Us . Subscribe . Advertise . Editorial Outline . Contact Us . Current Issue . Back Issues . Jon Eakes

© Copyright - Work-4 Projects Ltd.

COVID-19 slump exposes contractor liability

March 24, 2020

Residential and commercial construction will slow in the face of the COVID-19 crisis and the Council of Ontario Construction Association (COCA) warns this could leave builders on the hook.
“We need legislation to protect contractors and subcontractors from liability for project delays to the extent that they are caused directly or indirectly by the pandemic and pandemic response measures,” COCA stated in a March 17 letter to the Ontario government.
COCA noted contractors are typically bound by contract to complete work according to fixed deadlines. Missing a contractual deadline usually results in legal liabilities with financial damages for contractors and subcontractors. Owners can claim compensation for lost rent, the cost of alternative accommodations for tenants, lost profit, increased financing costs, increased insurance and other damages.
“Delay claims against contractors and by contractors against subcontractors usually exceed the price of the contract or subcontract in  issue. These losses are typically uninsured,” stated COCA president Ian Cunningham.

Most construction contracts in Canada permit an extension of contract deadlines where delays are due to forces beyond the control of contractors, but COCA would like to have a viral pandemic specifically included in provincial legislation.

New Product of the Month


homeBUILDERcanada.com | Home BUILDER Magazine | Canada's #1 Information Source for Residential Home Builders and Professional Renovators

HB house ad sub
Home Builder Magazine Ask Jon Eakes
Home Builder current issue