Common law-the system of specific remedies in the English legal system that were available in certain circumstances.

English monarch-the first to add remedies as needed

The courts of equity-the first separate court system
The old common law and the courts of equity eventually combined evolving into present Canadian common law.
The theory of president-applying legal principals established in previous court decisions that involved similar or
analogous fact situations.
Judge-made law-court made decisions establishing legal principals
Legislation-statutes enacted by elected legislatures
Statute-is a codification of the law as the legislature determines at the time of enactment
When made in accordance with an authorizing statute; regulations are another source of law
The provincial legislatures are generally empowered to enact statutes dealing with matters of a provincial nature,
including property rights. Ex mechanics, construction.
Doctrine of Parliamentary Supremasy-the courts could not question the wisdom of any statute, even one that offended
civil liberties.
Everyone has the following fundamental freedoms: freedom of conscience and religion, freedom of thought, belief,
opinion and expression, including freedom of the press and other media of communication, freedom of peaceful
assembly, and freedom of association.
The constitution of Canada is supreme law.
Decisions of the supreme court of Canada rank the highest, then the court of appeal, and precedents from other
common law jurisdictions.
The court of Ontario is composed of the superior court of justice (dealing with large claims and federal criminal matters)
and the Ontario court of justice (dealing with domestic matters except divorce & criminal involving provincial offences).
Small claims court falls under the superior court of justice.
Federal courts of Canada has jurisdiction over federal matters. Ie patents, trademarks, and copyright.
Public law deals with the rights and obligations of government, individuals and private organizations. Ex criminal and
constitution law.
Private law deals with rights and obligations of individuals and private organizations. Ex contracts & torts
Civil legislation refers to dispute under private law in Quebec and is not founded upon the English common law system.
The independence of judiciary law is the key to the premise of “rule of law” meaning no one is above the law.
Litigation-a lawsuit
Plaintiff-in civil litigation, the party bringing the action or making the claim in the lawsuit. In criminal matters usually the
crown.
Defendant-called the accused
Appellant-the party appealing the decision of the lower court. In both civil litigation or criminal matters.
Respondent-the party seeking to uphold the decision of the lower court that is being appealed. Both civil and criminal
Privity of contract-describes the legal relationship between parties to a contract
Creditor-the party to whom the amount is owing
Debtor-the party that owes the amount to the creditor
Indemnification-a promise to directly compensate or reimburse another party for the loss or cost incurred.
Chapter 2
Types of business-sole proprietor, partnership, and corporation (imaginary person).
A partnership is dissolved by the death or bankruptcy or insolvency of one of its partners.
A corporation has a perpetual existence as long as it complies with its governing statute and no procedural steps are taken
to dissolve the corporation.
The incorporator shareholder who signs a guarantee becomes obligated to the loan institution for the debts.
A Canadian controlled private corporation is generally eligible to receive a credit in respect of its tax called “small
business deduction”.
A corporation splits its after tax income between shareholders by way of dividends. Each person is entitled to a dividend
tax credit.
Taxes payable on the dividends are only due when dividends are paid by the corporation.
Distinction between the corporation and the individual is disregarded in the case of fraud.
Engineers may incorporate and carry on the business of engineering as a corporation. Providing limited liability and tax
advantages
If a limited partner takes part in the control of the business he or she can become liable as a general partner.
LLP limited liability partnerships-requires professional liability insurance.
A special reciprocal arrangement exists between Ontario and Quebec allowing incorporations to do business in either
province without an extra provincial license.
Objects-the business purpose
Private corporation-the right to transfer shares is restricted, the number of shareholders (exclusive of present or previous
shareholders) is not more than 50, and any invitation to the public to subscribe for its securities is prohibited.
Public corporation-the share of which are offered and distributed to the public in accordance with securities legislation
and stock exchange requirements.
Shareholders are the owners of the corporation.
Shareholders elect the directors to supervise the management of the corporation’s affairs and business.
The officers are elected or appointed by its directors and provide the day to day business management.
A shareholder agreement covers who is entitled to nominate members of the board of directors of the company, the
obligations of the shareholders with respect to guarantees of the company’s indebtedness, and the basis upon which issued
shares of the company may be sold by a shareholder.
The directors standard of care- every director and officer shall act honestly and in good faith with the view to the best
interests of the corporation, and exercise the care, diligence and skill that a reasonably prudent person would exercise in
comparable circumstances.
Fiduciary duty is a term that refers to a person acting as a trustee
Only general partners are authorized to transact business on behalf of limited partnership
Directors’ liability to employees for wages-the directors of a corporation are jointly and severally liable to the employees
of the corporation for all debts not exceeding six months wages.
Limitation of liability-a director is liable if the director is sued while he or she is a director or within six months after
ceasing to be a director, and the action against the director is commenced within six months after the debts become
payable (the corporation is sued against the director, or the corporation goes into liquidation)
The offence committed by the corporation in not filing the returns is guilty of that offence personally. The penalty is not
more than $5000 and up to 2 years imprisonment.
Knowingly Filing a false report, return, notice or other document is liable for up to $5000 fine and up to 6 months
imprisonment.
Disclosure of conflicts-A director must not vote in approval of any contract he or she has personal interest in.
The joint venture-a partnership limited to one particular project. It should include a clear definition of the scope of the
venture, and the obligations of the parties to the agreement and the manner in which revenues and costs are to be shared.
Chapter 3
Political risk insurance may be available when working globally dependant on the area
It is advisable to maintain close alliances with carefully selected local partners or joint ventures who can assist and advise
with respect to compliance with local laws and customs.
Contractual arrangements typically include gas supply contracts, gas transportation contracts, design and construction
contracts, steam sales and electricity sales agreements.
Countries where commissions, bribes, and kickbacks are commonplace is typically illegal and penalties may be severe.
FIDIC contract forms of the international federations of consulting engineers are favored and financed by the world bank
and feature an independent dispute resolution board.
Global dispute resolution-arbitration has long been recognized by international business parties as the preferred method
of dispute resolution providing speedier, more efficient, and less costly means then the courts.
Pre-arbitral ADR (alternative dispute resolution) techniques include contractual mandatory mediation provisions, the
establishment of project dispute resolution boards or dispute adjudication boards, the use of project neutrals, and the
enactment of statutory adjudication legislation intended to significantly shorten the time for the resolution of disputes.
Mediation is the means of attempting to resolve a dispute through negotiation.
Each DRB (dispute review board) is typically comprised of a panel of neutral third parties selected by the owner and
contractor prior to the commencement of the project and selected based on their neutrality, integrity, and expertise.
The less formal procedure of DRB meetings usually does not include direct and cross-examination of witnesses by
counsel.
In England a statutory adjudication process applies to the resolution of construction disputes under the English housing
grants.
Adjudicators are not required to have legal training.
ADR techniques are used to avoid, or lesson the likelihood of, construction litigation and to a lesser extent at least
construction arbitration.
Only arbitration decisions on international disputes are enforceable in other member countries under the New York
Convention.
The application of civil code provisions rather than the common law precedent system that is the primary distinction
between civil law and common law systems
Ex of differences are common law places great emphasis on the importance of consideration, and civil law system places
far more emphasis on the intention of the parties to contract.
In common law monetary compensation is normally the remedy for breach of contract. In civil law specific performance
may be granted as a primary remedy, at the courts discretion rather than monetary compensation.
In common law lawyers typically conduct the process of investigation through discovery (in the US the discovery process
is used for the search of the truth in the matter- colloquially referred to as the search for the “smoking gun”).
In the traditional civil law jurisdiction the judge or arbitrator takes the lead in the investigative process (a more selective
production of documents and investigation by the tribunal).
Arbitration organizations engaged in administering international arbitrations include the International Center for
Dispute Resolution (ICDR), the International Chamber of Commerce (ICC), The London Court of International
Arbitration (LCIA), Hong Kong International Arbitration Centre (HKIAC), the Singapore Arbitration Centre, and the
British Columbia International Arbitration Centre.
Ad hoc-the agreement without involving an administrative authority
UNCITRAL-United Nations Commission on International Trade Law (popular guidelines on international arbitration)
Uniform international sales law (UNCITRAL convention on the international sale of goods CISG)
Chapter 4
Tort-generally refers to a private or civil wrong or injury, one that involves negligence and that may arise
independently of contract.
No privity of contract is required for tort liability to exist.
Concurrent liability in tort and contract- is when tort liability and liability for breach of contract both occur.
The fundamental purpose of tort law is to compensate victims of torts.
Professional liability insurance coverage if not obtained must be disclosed to the client when providing design services
to the public.
Some companies, government departments, and crown agencies choose to self insure provided adequate funds.
To satisfy that compensation should be made the plaintiff in a tort action must substantiate that –the defendant owed the
plaintiff a duty of care, the defendant breached that duty by his or her conduct, and the defendants conduct caused the
injury to the plaintiff.
Negligence is an action or omission in the carrying out of the work of a practitioner that constitutes a failure to maintain
the standards that a reasonable and prudent practitioner would maintain in the circumstances.
Strict liability- a manufacturer may be strictly liable for any damage that results from the use of the product even though
the manufacturer was not negligent in producing it.
An employer is vicariously liable for the damages if an employee commits a tort in the course of employment.
Concurrent tortfeasors-when more than one party is liable for torts that concur to produce the same damage.
Products liability-when it can be established that injury ought reasonably to have been foreseen in any particular
circumstances. Ex manufacturers of products, assemblers, installers, sub-manufacturers, importers, wholesalers, and
distributers
Economic loss-you are liable for economic loss if you should have reasonably known of effects causing economic loss or
in the event of negligence.
3 other torts
The tort of defamation, which is further divided into two classifications: libel-statements of slander made in writing and
slander-statements made verbally damaging the reputation.
Occupiers’ liability-visitors of a business must be safeguarded against dangers the occupier is aware of or should be
aware of.
The tort of nuisance-to alleviate undue interference with the comfortable & convenient enjoyment of the plaintiffs land
Chapter 5
Statute barred-an action commencing after the prescribed time period
Limitations vary from country to country
Discoverability is when the damage is first discovered, or ought to have been discovered.
The Ontario limitations act-in tort or in contract have an ultimate limitation period of 15 years.
Business parties can agree to extend or shorten the limitation period.
Discoverability concept has formed the basis for a claim discovered on the earlier of, the day on which the person with
the claim first knew, i) that the injury, loss or damage had occurred, ii) that the injury, loss or damage was caused by or
contributed to by an act or omission, iii) that the act or omission was that of the person against whom the claim is made,
and iv) that, having regard to the nature of the injury, loss or damage, a proceeding would be an appropriate means to seek
to remedy it. And the day on which a reasonable person with the abilities and in the circumstances of the person with the
claim first ought to have known of the maters referred to in previous sections.
A contractual relationship doesn’t provide protection from third party claims in tort.
Chapter 6
The burden of proof involves two types i) beyond a reasonable doubt and ii) balance of probabilities
Chapter 7
For a contract to be binding 5 elements must be present i) an offer made and accepted, ii) mutual intent to enter into the
contract, iii) consideration, iv) capacity of contract, and v) lawful purpose.
In certain circumstances the law may intervene to declare a contract void, voidable, or unenforceable.
The right to receive payment for services rendered can be assigned to the third party by one of the contracting parties
without the consent of the other party on the contract.
Chapter 8
An offer is a promise made by one person
Acceptance of an offer must be clearly communicated
Not all contracts must be in writing
Bidders submit offers or tenders that have been made irrevocable for a specific period of time.
Where irrevocable offers are submitted they must be submitted under seal, in order to be binding.
The option contract is a means of keeping an offer open for a period of time until the offeree chooses to exercise the
opinion. If not exercised within a period of time the offer will expire. Something of value must be made at the time of
entering into the option agreement in order to make the option contract enforceable.
Unless two parties agree to communicate by post or telegram the communication of the acceptance of an offer is effected
only when it is actually received by the offeror.
An offer is generally not revoked until the offeree actually receives notice of the revocation.
The general rule is that the law of the place where the acceptance of the offer becomes effective is applicable (unless
otherwise agreed upon).
Chapter 9
A letter of intent is used to express interest in proceeding with a particular transaction, usually on the basis of further
negotiation and subsequent agreement.
An agreement to agree is not an agreement at all.
Chapter 10
Consideration can be described as something of value that is exchanged by contracting parties. The payment of money
is not essential.
No contract is formed unless the document is sealed.
An irrevocable offer without consideration or a seal is simply a gratuitous promise and is not legally binding.
Equitable estoppels-Relief for the party that relies upon the gratuitous promise. Equitable defense cannot be invoked
unless there is some evidence that one of the parties entered into a course of negotiation which had the effect of leading
the other to suppose that the strict rights under the contract would not be enforced.
Chapter 11
A contract with a minor can be enforceable by the minor but unenforceable by the other party.
Contracts are unenforceable for persons with mental incompetents or intoxication provided the other party to the
contract was aware, or ought reasonably to have been aware.
If it is clearly beyond the power of the corporation to enter into the contract, the contract will not be enforceable.
If there is any doubt about the authority of an official to act on behalf of the corporation, appropriate enquires should be
made.
Chapter 12
A contract will not be enforced if the purpose of the contract is unlawful. Some examples include: a contract contrary
to the provisions of the bankruptcy and insolvency act (transfer of property within a year of bankruptcy is void), a
contract that is contrary to the provisions of the competition act (to engage in bid-rigging), a contract that provides for a
waiver of lien rights contrary to section 4 of the construction Lien Act of Ontario, and a contract for services where the
party to perform is required to be licensed pursuant to a statute or by law.
A contract that contravenes statutory law or is against public policy may be illegal &/or void according to common law.
Chapter 13
The statute of frauds stipulates that certain types of contracts must be in writing to be enforceable.
Various types of contracts include interests in land and guarantees of indebtedness
An indemnification need not be in writing to be enforceable.
The statute was developed to prevent property interests being lost though fraudulent testimony about verbal agreements to
convey property interests.
A verbal contract may be unenforceable but it will not be treated as void. Ex if someone does not honor a verbal
agreement to convey real property then the courts will not permit the defaulting party to retain a deposit cheque.
Chapter 14
An innocent misrepresentation is a false assertion made by a party who does not appreciate that the statement is false.
A fraudulent misrepresentation is a statement made knowingly or without belief in its truth if recklessly careless whether
it be true or false.
An innocent misrepresentation is remedied by rescission of the contract. (the deceived party must repudiate the contract
within a reasonable length of time.
Duress is a contract induced by means of intimidation and is voidable.
Undue influence is similar to duress where one party to a contract dominates the free will of the other party to such an
extent as to be able to coerce the dominated party into an unfair agreement.
Chapter 15
With a mistake courts will intervene only in rare circumstances to provide relief to a contacting party that has made a
mistake.
Rectification is an order used to correct a common mistake that is of a secretarial or recording nature.
If a tender is withdrawn before the offerer has a chance to accept the offer the offerer is required to forfeit its deposit.
Contract A is an invitation to tender made by the offerer
Chapter 16
Contract B-the contract that is formed on the award of the contract A that addresses the substance of the work or services
to be performed
Treating all bidders fairly is an implied contractual term
An owner who receives all bids above his budget holds the right to reject all bids and adjust the scope of contract A
Engineers engaged to make recommendations relating to the selection of successful bidders may incur significant liability
if they are negligent.
Bid shopping-the negotiations of price after the close of tenders where such negotiations are not expressly provided for
in the tender documents. (regarded as a nefarious practice)
Chapter 17
The liberal approach takes into account the intent of the parties
The strict approach focuses on the precise words in the agreement
Unconscionable-an unlikely possibility where it is between business parties
Rule of contra proferentem-where a contact is ambiguous it will be construed or interpreted against the party that drafted
the provision.
The parol evidence rule-evidence of the omitted condition (terms that are agreed upon verbally are not included in the
written contract)
Chapter 18
When all parties to a contract have completed their respective obligations, the contact is at an end.
The parties to a contract are always free to amend the contract upon mutually agreeable terms and conditions.
A contract may be terminated upon the bankruptcy of one of the parties or if a contractor has failed to complete the
work properly or comply with the requirements of the contract.
A contract is discharged by frustration if exceptional circumstances not contemplated by the parties arise such as war.
The force majeure clause usually provides that time for completion will be extended in the event of war, riot,
insurrection, flood, labour dispute, or other events that arise beyond the control of either party.
 Material after midterm

Chapter 19
A non-defaulting party may be entitled for damages sustained as a result of the breach and may be entitled to regard the
contract as discharged.
Condition-an obligation that is essential or vital to the contract
“Warranty”-an obligation that is not essential to the contract (minor term of contract) or it can mean guarantee
Breach does not always discharge a contract. A breach of contract that prevents sustainable performance (renders it
purposeless) is cause of discharge.
Repudiation- when one party expressly tells the other that he/she has no intention of performing contractual obligations
As a result of breach of contract the injured party may be entitled to a quantum meruit remedy and equitable remedies
called specific performance and injunction
Direct damages-difference between defaulting parties cost to the second lowest bidders cost.
Indirect damages are consequential to the breach (ex. lost profits from a plant shutdown, cutting a power line)
A party that suffers a loss through a breach of contact must take reasonable steps to mitigate or reduce damages suffered
Liquidated damages-pre-estimated damages for the penalty of an event (not completing the project on time)
Quantum meruit-a reasonable amount paid for performing services with no express agreement
Doctrine of substantial compliance-damages caused by failure to comply with a minor aspect of the contract
Specific performance and injunction are equitable remedies
Specific performance-a contract to perform a contractual obligation (sale of land or a vehicle)-not engineering services,
construction, manufacturing, or installation of machinery
Injunction- a court order that prohibits or restrains a party form the performance of some act, such as a breach of contract
A remedy of injunction is not granted without a negative covenant (promise not to do something) in a contract
Chapter 20
A doctrine of fundamental breach may be applied to a contract that contains an exemption clause rendering it ineffective
in the event of a fundamental breach of contract.
Exemption clause- a provision limiting the extent of liability as a result of breach of contract from the root of the contract
An exemption clause loses its validity if enforcing it is not fair and reasonable
If an exemption clause is clear and direct it will be enforced unless it is unconscionable
Chapter 21
A contract between a client and an engineer will not usually specify the measure of the standard of care in performance
that is expected of the engineer.
As an agent (principal being the client), the engineer must be careful to act only within the scope of his or her authority
If an engineer is retained by a client to perform services, and undertakes to do so without agreeing with the client on the
amount of remuneration to be received, the law implies that the engineer shall be paid a reasonable amount for services on
a quantum meruit basis
It is not unreasonable for an engineer to limit his/her liability to the limit of their liability insurance
Planning and zoning hierarchy of governmental authorities, starts with the province and its ministries and then goes to
regional municipal authorities and, then to the local municipal authority
Niagara escarpment green belt is an example of a broad planning principle on municipalities
At the municipal level, the broadest document is the “official plan”, which sets out principles to the establishment and
grouping of uses on lands within the municipality
Only zoning bylaws are enforceable obligations with regard to land use
An inconsistent land use already in place is treated as a “lawful nonconforming use’
A developer wishing to create a series of smaller properties out of a large holding will apply for approval of a “plan of
subdivision”
A person holding a parcel of two acres who wishes to create separate on-acre parcels must apply to the municipality
having jurisdiction for “consent to severance”
Site plan control-a proposed design of a new development with the cities consent (widening of roads)
Chapter 22
In breach of contract the limitation period of six years runs from the breach of duty, rather than from the time the breach
was or ought to have been discovered
In tort the limitation period starts to run when the damage is first detected or ought to have been detected
Where two persons are found at fault or negligent, they are jointly and severally liable to the person suffering the damage
It is possible to be liable in contract and in tort simultaneously
Chapter 23
A contract may be repudiated and damages may be awarded for the tort of deceit due to lack of honesty
Fraud is a criminal offence and punishable upon conviction of up to 10 years imprisonment
Everyone commits an offence if they corruptly give offers or agree to give or offer to an agent bribes and kickbacks
Everyone commits an offence if they demand, accept or offers or agrees to accept any reward/benefit for doing any act
relating to business
Everyone commits an offence if they intend to deceive a principal a receipt, account or other writing in which the
principal has an interest, contains false statement, is defective in any material particular, and is intended to mislead the
principal
A conviction for taking secret commissions can result in imprisonment
Chapter 24
Some aspects of administration of construction contracts an engineer is often authorized by both the owner and the
contractor to make decisions are 1) in the preparation of payment certificates, 2) in the preparation of certificates to
evidence substantial and final completion of the work, 3) in determining appropriate extension periods in construction
delays, 4) in the determination of a failure to fulfill obligations etc
An engineer must act independently of the owner and in good faith
Chimney too close to wooden joists not checked by engineer due to coverage with gyprock
If contract “extras” proceed without written authorizations, as contractually required, a party may be equitably stopped
from denying that it had waived its contractual rights
A tender is a contractor’s offer to complete construction as described in the bid submission
Types of construction contracts:
1) Stipulated-price or Lump-Sum contract—benefit of knowing the total price of a job
2) Unit price contract—price per unit/quantity of material
3) Cost plus contracts
a. Cost plus percentage-covers the cost of overhead and materials plus a percentage (no incentive to reduce
costs)
b. Cost plus lump sum fee-at the owners advantage but also no incentive to reduce costs
c. Cost plus lump sum fee plus bonus—incentive to reduce costs for every dollar saved
4) Guaranteed maximum price plus bonus—incentive for the contractor for savings on the project. with a price cap
on the overall cost of the project
A project manager simplifies the construction process for the owner for a premium and may lead to overall cost savings
Privity of contract exists between a contractor and all its subcontractors but not between the owner and the subcontractors
If a contractor waits until completion of a contract before claiming reimbursement, the contractor deprived the owner of
the ability to rescind (take back/cancel) the contract
“Statue barred”- failure to comply with guidelines of a contract leading to dismissal of a claim in court
A means of formal communication is considered a form of written notice
“fast track” or phased construction approach—where construction proceeds on the designed portions of a project while
other portions are still being designed
“Multi-primes”-parcel out the work of the various trades on individual prime contract arrangements
BOT-build operate transfer-where a contractor not only designs and constructs the project but also is responsible for its
financing. The project is typically transferred to the government or private “owner” at the end of the operating term
Chapter 25
Risks of construction
If the local currency of a project is unstable and future operating periods generate inflated and devalued currency returns,
the actual project revenues may fall far short of the projected returns pursuant to the economic feasibility analysis for the
project
From the contractor’s perspective it may be advisable to provide services as a construction manager rather than as a
general contractor to avoid contractual responsibility for the performance of trades
In Canadian construction the standard for contract documents published by the Canadian construction documents
committee (“CCDC”) are widely used
Traditional approach to contracts-where the project architect does not assume contractual responsibility for normal
structural, mechanical, and electrical engineering services
Multi prime structure-the owner enters into a multiplicity of contracts with various trades
CCDC standard form construction contracts are between owner and contractor
If concealed or unknown conditions are discovered by the owner or contractor then the observing party shall notify the
other in writing before conditions are disturbed and in no event later than 5 working days after the first observance. Upon
the investigation of the consultant either a change order is issued or reasons for the justification of contract price and
time are provided in writing
Project delay by the owner entitles the contractor to reimbursement and extension of time under provisions of the CCDC
standard form
It is the risk of the owner for all toxic or hazardous substances or materials and must be disclosed in writing to the
contractor.
Under the general CCDC form the owner is to increase or decrease cost due to changes in taxes, duties, laws, regulations,
or codes change subsequent to the date of bid closing.
The contractor is solely responsible for construction safety at the place of the work
The CCDC form protects the contractor from the risk of proceeding without a fully signed change order
**The party that is in the best position to assess and manage any particular risk should assume that risk**
Performance bonds are available to provide a contractual basis which the owner can look to a surety company where the
surety company is obligated to provide funds if the general contractor fails to pay its subcontractors or material suppliers
(in other words a company that will back up the contractors in the event they cannot pay)
Security approaches against performance risks include unconditional or conditional letters of credit. On international
contracts, these instruments are referred to as performance guarantees or as performance bonds
Ambiguous clauses are attacked on the basis of the rule of contra proferentum (against the party that drafted the
ambiguous clause)
The warranty period in regards to contract is one year
Chapter 28
A clause may be provided were an arbitrator is selected by each party and that the two representative arbitrators shall then
appoint a chair and form a 3 person arbitration. If a chair cannot be agreed upon a court may decide on one.
A partnering “workshop” provides a forum in which participants focus on the importance of good communications, team
spirit, and mutual project goals (does not replace the contract but outlines a general way important co-operative goals)
A fundamental difference between litigation and arbitration and mediation is that it is only litigation and arbitration that
result in an adjudication that is binding. In mediation, it is up to the parties to work out their differences
Chapter 30
The general purpose of the various mechanics’, construction, and builders’ lien acts of the provinces is the same. They
only differ slightly from province to province (Ex. The percentage of holdback)
Anyone who supplies services or material to an “improvement” for the owner is entitled to lien rights
Privity of contract exists between and owner and a general contractor but not between and owner and a subcontractor.
Thus lien rights provide a cause of action between the owner and subcontractor
The owner is liable to pay additional funds to satisfy a lien claim if the owner does not withhold the required percentage
of holdback from the general contractor
Holdback amount-10% of the price of services or materials as they are supplied
2 holdbacks-one for work or services performed before it is certified that the contract is substantially performed and the
second for finishing work
Release of holdback-holdback may be released when all liens when all liens that ma be claimed against that holdback
have expired or satisfied
A contract is complete when the last supply is not more than the lesser of one percent of the contract price or $1000
Damages for not certification-if an engineer doesn’t certify substantial performance, the engineer may be liable for
damages
Prohibition against waiver of lien rights-an agreement to waive lien rights is void
Limits on amount of lien claim-a lien may be claimed only for the price of services and materials supplied prior to the
time of the claim.
A lien must be “preserved” (in other words claimed) before the end of a 45 day period
Building mortgage –a mortgage taken to finance the construction project
Prior mortgage-registered prior to the time lien first arises
Subsequent mortgage –any mortgage registered after the time a lien first arises
Chapter 31
Misleading advertising that is conducted knowingly or recklessly can result in a fine of no maximum limit or
imprisonment for five years or both
To restrain or injure competition unduly is guilty of an indictable offence and liable to imprisonment for a term not
exceeding five years or to a fine not exceeding ten million dollars or both
Chapter 32
The general purpose of legislation is to protect the public interest
“Professional engineering” is defined as any act of designing, composing, evaluating, advising, reporting, directing or
supervising wherein the safeguarding of life health, property or the public welfare is concerned and that requires the
application of engineering principles.
The disciplinary committee is authorized to hear and determine allegations of professional misconduct or incompetence
The penalty for practicing professional engineering without a license or for holding oneself out as engaging in the practice
of engineering without license includes a fine of not more than $25000 for the first offence and $50000 for each offence
thereafter
The registrar is authorized to refuse to issue, to suspend, or to revoke a certificate of authorization.
All holders of certificates of authorization must have professional liability insurance with a minimum coverage for not
less than $250000 with an aggregate policy of not less than $500000 per year
A joint resolution board is authorized to assist in the resolution of “scope-of-practice’ disputes
OAA-Ontario association of architects
An engineer could face disciplinary hearings if drawings were prepared negligently even though construction of the
structure described by the drawings and specifications had never taken place
Chapter 36
The most significant of the federal statutes is the Canada Labour Code covering three general areas of employment law.
part one sets out minimum employment standards for hours worked , overtime pay, minimum wages, holidays, vacations
etc.
Another portion deals with the safety of employees and the refusal to work where there is imminent danger to an
employees’ health and safety
The third covers relations between trade unions and employers and the certification of unions as bargaining agents for
employees
CPP and EI are to be deducted from each employee and payment is to be matched by the employer
Employers must prepare and submit an employment equity report to the minister of labour containing industrial sector;
geographical location; and employment status including occupational groups, salary ranges, hires, promotions, and
terminations.
The report must be accompanied with a narrative to supplement the numerical data
The employment standards act establishes minimum terms and conditions of employment
For an employee with more than 10 years service, the maximum notice of termination required is eight weeks. For
employers with a payroll of $2.5 million or more must pay severance pay based on one week for each year of service
No fault insurance-the worker is entitled to compensation without having to establish that their employer and/or
coworkers were negligent
The workers compensation accident fund finances five main types of benefits which are: income replacement benefits;
permanent impairment benefits; health care benefits; and rehabilitation services
A health and safety committee is required at most workplaces where 20 or more workers are employed
The committee must consist of at least 2 persons if the company has fewer than 50 employees and 4 for 50 or more
employees