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ARTICLE · 26 FEBRUARY 2024

Cease Work At Your Peril: Campus Contracting Inc. v. Torbear Contracting Inc.

McCarthy Tétrault
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Determining whether a contractor or subcontractor has abandoned a project can be a tricky issue that owners and contractors often have to address quickly.

CanadaReal Estate and Construction
Canadian Construction Law Blog
Canadian Construction Law Blog
Ivan Merrow
Ivan Merrow
Abygail L. Cross
Abygail L. Cross
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Determining whether a contractor or subcontractor has abandoned a project can be a tricky issue that owners and contractors often have to address quickly. Helpfully, the Ontario Superior Court of Justice recently provided some guidance on this issue in Campus Contracting Inc v. Torbear Contracting Inc., 2023 ONSC 6782. The Court adjudicated a subcontractor's claim for unpaid invoices after it stopped work, and, after seven days of trial, the court found the subcontractor had abandoned the project and denied its claim for payment.

Key Takeaways

Before a contractor or subcontractor ceases work on a construction project due to alleged non-payment, it must ensure that payment is owing in strict accordance with the contract's payment terms. All conditions for payment must be satisfied. Notice requirements must be complied with to support the reasons for ceasing work. Non-payment of invoices must go to the root of the contract to support the decision to halt the

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