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ARTICLE · 29 AUGUST 2023

Don't Be Left Guessing On Your Estimates

McLennan Ross LLP
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The Alberta Court of Justice reaffirms basic contractual principles when analyzing estimates in Medusa Contracting Inc. v Efficient Quality Homes Inc., 2023 ABCJ 123 ("Medusa Contracting").

CanadaReal Estate and Construction
Maxine Fine
Maxine Fine
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The Alberta Court of Justice reaffirms basic contractual principles when analyzing estimates in Medusa Contracting Inc. v Efficient Quality Homes Inc., 2023 ABCJ 123 ("Medusa Contracting").

Developers and homeowners are often provided estimates that may turn into the contractual basis for the work being undertaken on a project. However, when multiple estimates are provided, questions may arise as to which estimate will ultimately be relied upon.

BACKGROUND

Medusa Contracting Inc. (the "Plaintiff') was hired to complete the framing of a new home. The Plaintiff provided an estimate to Efficient Quality Homes Inc. (the "Defendant") on September 25, 2021, and quoted a price of $26,793.90 for the work (the "first estimate"). The following week, the Plaintiff presented another document: an estimate of $20,500 (the "second estimate").

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