Extra! Extra! How Do Subcontractor Change Orders Affect The Lien Fund? It Depends…

More often than not, contractors and subcontractors perform extra work on construction projects over and above the scope of work contemplated by a fixed price contract. Where a subcontractor performs extra work at a contractor's request, it will often be to the contractor's account, absent any work required by a subcontractor to correct deficiencies in its own work. However, determining whether the contractor can charge extra work by a subcontractor to the owner will depend on the facts, and evidence is required as to who asked for the extras and why. Further, how this extra work is dealt with when setting the lien fund can become an issue as between the owner and a contractor. The court dealt with these issues in the recent decision of Justice J.T. Eamon in Architectural Millwork & Door Installations Inc. v. Provincial Store Fixtures Ltd. 2018 ABQB 323.