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ARTICLE · 17 DECEMBER 2019

Deference To The Project Consultant

A recent decision of the Alberta Court of Appeal serves as a stark reminder that the Consultant appointed in a CCDC contract wields considerable authority

CanadaReal Estate and Construction

A recent decision of the Alberta Court of Appeal serves as a stark reminder that the Consultant appointed in a CCDC contract wields considerable authority to determine the rights of the parties.

The Court’s Decision

In ASC(AB) Facility Inc v Man-Shield (Alta) Construction, 2019 ABCA 379, the Court considered a dispute regarding the amounts owing for work performed pursuant to a CCDC2 fixed price contract.  The Consultant determined that the Contractor did not perform some of its work to contractual requirements and that the Owner could deduct the value of that work from amounts otherwise owing to the Contractor.  The Contractor sued for the contract value, asking the Court to find that Consultant erred in deducting various deficiency costs when certifying the final payment due to the Contractor.

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