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ARTICLE · 11 JULY 2024

Beware The Contractual Limitation Period

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It is common for construction contracts to contain provisions respecting the resolution of disputes.

CanadaReal Estate and Construction
Paul Ivanoff
Paul Ivanoff
Bushra Nassab
Bushra Nassab
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It is common for construction contracts to contain provisions respecting the resolution of disputes. Industry participants employ a wide array of mechanisms to address and resolve claims. These may include straight-forward provisions, such as those contained in the CCDC-2 form of contract, to more elaborate resolution systems requiring many levels of review, mapped over various prescribed timelines. In navigating through a claims resolution process, parties must be mindful of their contractual rights and obligations in connection with dispute resolution, including those pertaining to limitation periods.

Under Ontario's Limitations Act, 2002 (the Act), there is a two-year basic limitation period founded on the concept of discoverability. The Act also provides that parties to a "business agreement" may vary limitation periods in certain circumstances and in the manner set forth in the Act. Contractual dispute resolution systems, including elaborate ones with multiple

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