Doing Work When No Contract Is In Place: Navigating The Risks In Construction Contracts

1473662 Ontario Limited v. Avgroup Consulting Services Limited

On May 5, 2011, the Ontario Superior Court of Justice released its reasons for dismissing a motion for summary judgment in 1473662 Ontario Limited v. Avgroup Consulting Services Limited. In this case, the plaintiff, 1473662 Ontario Limited, also known as Dyson Electric, provided electrical contracting services to Avgroup, the general contractor of a 121-room hotel and 83-room residential development in Sudbury, Ontario owned by Vrancor Development Corporation ("Vrancor").

With no formal contract in place between the two parties, the case had as a major component, the contractual dispute as to what contracting terms prevail. The court held that the issue of which terms prevailed was a matter of credibility and required evidence from witnesses at a full trial.