Construction Contracts & Why You Should Have One

An ounce of prevention is worth a pound of cure – particularly for construction. Whether it is a new build or a renovation, it is costly work prone to surprises. A properly drafted contract will benefit both the owner and the contractor by providing clarity and certainty. The contract should:

• Clearly define the scope of work and corresponding price;
• Detail the timeline for completion and payments; and
• Provide a mechanism for addressing unexpected changes.

Without a proper contract, the parties risk having conflicting expectations leading to serious disagreements. This puts the project in peril and leaves everyone involved unhappy. The consequences of an ill-defined contract came to bear recently in the case of Atlantic Canada Log Homes Inc.v. Buergi. The key take aways are: