Retaining holdback is no joke. Failure to do so may be catastrophic and may result in double payment. Take a look at a recent case our office argued and the consequences that follow to the owner who failed to retain holdback.
Contrary to the commercial construction industry, in which prevenient agreements and purchase orders may be sufficient to govern the relationship between parties, contracts in residential construction must be formal in order to protect homeowners. Particularly, the Consumer Protection Act, 2002 has been deemed to apply to residential construction and renovation agreements.
In an effort to maintain safe construction practices, the Ontario legislature enacted the Building Code Act to protect the broader Ontario society by imposing and ensuring compliance with a set of minimum construction standards. But who is ultimately responsible for complying with this law: homeowners or builders?
Construction Law is unique to almost every geographical region. Learning one region’s laws, however, could be beneficial to advancing laws in our own.
