The imbalance between homeowners and contractors often leads to various blunders and consequences, some of which are innocent and others that are intentional (and stem from a lack of education on the part of homeowners). In this blog, we will be discussing some of the common pitfalls and traps affecting homeowners during their construction projects.
This article explores Notices of Non-Payment under the Construction Act in closer detail, as well as their requirements and the consequences (or lack thereof) of non-compliance.
Deficiencies are a common reason for litigation in construction proceedings. Dissatisfaction due to deficient work can make homeowners act in a zealous manner – namely, firing existing contractors, hiring subsequent contractors to finish or correct remaining work, and litigating against the initial contractor for the cost of correcting such deficiencies. However, the law recognizes that reasonable opportunities must be provided to correct such deficiencies before setoff or claim rights are allowed.
A fixed price contract offers a ‘fixed price’, meaning a fixed scope of work for a predetermined price. Read this article to learn more about the benefits and risks of entering into these forms of agreements.
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 this case, the Court considers the importance of establishing a direct connection/chain between the party claiming a trust relationship and the party against whom trust obligations are imparted.
Despite its benefits, holdback has disadvantageous features to certain subcontractors in the context of larger-scale projects – early release assists with this problem.