What Are Some Agreement Related Issues?

Whenever an agreement is signed, careful attention must be focused on whether the contract or agreement in question properly addresses the issues facing the parties.

One common issue found in Infrastructure Ontario agreements is the need for the contractor to provide collateral for the loan. This can prove to be a challenge, given neither the project company nor the contractor own the building or the land. As such, the project company and contractor will need to provide other security, which security may include:

1. Provision of a strong balance sheet with a covenant to pay;
2. Guarantees from a parent corporation with a strong balance sheet;
3. The purchase of performance bonds and labour and material payment bonds;