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ARTICLE · 13 JUNE 2014

Final Certificate Of Payment – Final No More

Clark Wilson LLP
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BC Supreme Court declines to apply final payment certificate release to deny previously unstated claim for interest on late payments.

CanadaReal Estate and Construction
Roy Nieuwenburg
Roy Nieuwenburg
Michal Jaworski
Michal Jaworski
Cheryl Kornder
Cheryl Kornder
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BC Supreme Court declines to apply final payment certificate release to deny previously unstated claim for interest on late payments

BC Supreme Court decision in First Queensborough Shopping Centres Limited v Wales McLelland Construction Company (1988) Ltd.

Paying invoices late is common—so much so that paying 'on time' is a mark of an exceptional business relationship. Of course, that flies in the face of almost all construction contracts, because they normally require prompt payment and impose interest on late payments. So, to put it another way, it is normal (but not optimal) for those owed money to allow some leeway on the timing of bill payments. This is especially so when demanding prompt payment and charging interest on outstanding bills may put you on "the blacklist".

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