In the everyday business of construction companies, disagreements may arise between their clients or their contractors. Here’s where the expertise of a building construction lawyer comes in. They can help construction companies overcome these problems.
With their knowledge of Canadian construction laws, and how to deal with industry issues, building construction lawyers are a must for construction companies.
What is the job of a building construction lawyer?
Building construction lawyers can help construction companies when it comes to the different issues in their transactions with clients.
These issues may include:
- entering and enforcing contracts
- complying with federal and provincial construction laws
- preventing and addressing workplace accidents
With these, the services of a building construction lawyer can be advisory, transactional, or litigational when necessary.
1. Everything related to construction contracts
Transactions of construction companies are in most cases contractual in nature, whether it be with their contractors and the building owners.
Building construction lawyers can guide clients when drafting contracts, interpreting them, and enforcing them when disputes arise.
Creating construction contracts
Drafting a contract specifically made for the construction industry is important, since it will even address future problems before they happen.
It is also helpful that a contract is drawn up by a building construction lawyer because they know what specific details must be included in it.
For example, some of the important provisions that a construction contract must include are:
- defining specific roles of each party
- terms of payment
- dispute resolution process
- force majeure clauses
- standards for work completion
- liabilities for breach and damages (and its limitations)
- insurance
- termination of the contract
- amendments to the contract
Although there are some pro-forma contract forms that parties may use, it’s still wise to let a building construction lawyer review their contents.
This short video will explain why it’s important to have a lawyer review a construction contract:
Have the Lexpert-ranked best construction lawyers in Ontario review your contract if your property is in Ottawa, Toronto, Vaughan, or other areas in the province.
Contracts for project finance
Construction companies that need more funding for their projects may contract with financers, such as banks. They may also look for investors and other entities to further improve their assets, enabling them to accept more projects.
For these transactions, a building construction lawyer can provide advisory and contract-related services for construction companies.
Breach of contract
When one of the parties commits a breach of contract, a building construction lawyer will know what to do about the situation.
Below are some of the common reasons for breaches in a construction contract:
- delays in completing the project
- non-payment or delays in payments
- construction defects as to project specifications or industry standards
If the legal remedy is in the contract itself, they’ll know how to enforce it against the other party. For example, there are steps building construction lawyers can take when dealing with construction defects.
But if not, they can also suggest ways to deal with the breach, such as going through an alternative dispute resolution process (e.g. arbitration).
They will also know when the best time is to go to court, considering all the factors in the life of a construction contract.
2. Compliance with Canadian laws
To ensure that construction companies and their projects are legally compliant, they’re bound to observe Canada’s construction laws and statutes (which is discussed further).
There are other laws that also concern the construction industry and will affect their projects, which include:
- labour and employment laws
- environmental laws
- corporate laws on project finance and investments
Another legal area where building construction lawyers can help is obtaining licences and permits from government regulatory bodies.
3. Addressing workplace issues
On the side of the contractor or the project manager, there are instances when labour issues will arise.
A worker being injured during employment is one of the common workplace issues in these cases. Here, building construction lawyers will have to defend their clients against the claims of injured workers.
To prevent any mishaps, lawyers hired by construction companies can also help in advising them how to proactively address workplace concerns from a legal standpoint.
Who can a building construction lawyer represent?
Aside from construction companies and property developers, building construction lawyers can represent clients involved in infrastructure projects, such as:
- building owners
- construction workers
- project managers
- engineers and architects
- insurance companies
In some cases, a building construction lawyer can also be hired by third parties in a construction contract (e.g. when they’re injured by a project, or legally affected in any way).
Building construction lawyers can also work for different types of projects, depending on their specialization. It can be a project for a:
- public-private partnership
- residential area
- commercial purposes
What Canadian laws must construction companies be aware of?
Aside from what was discussed, there are several laws – federal, provincial, and local – that construction companies must consider when doing business in Canada.
For example, in Ontario, there are two important laws: the Construction Act and the Construction Lien Act. In British Columbia, it’s the Building Act and the Builders Lien Act. Other provinces would have similar laws that regulate construction projects in the province.
As for the building’s minimum standards, construction companies and their contractors must also comply with the Building Codes of the different provinces. These different laws are in addition to the common law principles that apply to the construction sector, and the Civil Code for construction companies in Quebec.
To know what laws apply to their business, construction companies must always consult with building construction lawyers. Not only because there is a lot of money involved, or to comply with the law, but also to protect concerned parties and their livelihoods.
Looking for a construction lawyer to help with your industry-related concern? Check out our list of the best construction lawyers in Canada as ranked by Lexpert.
Related articles: