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ARTICLE · 09 NOVEMBER 2026

Is Your Construction Manager Your Fiduciary?

WeirFoulds LLP
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Agency provisions are a common feature of construction management contracts, particularly those based on the CCDC 5A model, where the construction manager administers the project on the owner’s behalf but does not hold the trade contracts. These provisions are often treated as administrative language that simply allows the construction manager to perform certain project functions for the owner. A recent Nova Scotia Supreme Court decision suggests they may have more significant consequences.

CanadaReal Estate and Construction
Jeff Scorgie
Jeff Scorgie
Matt Gaulton
Matt Gaulton
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What owners and contractors should know about agency clauses after Omega Formwork Inc. v. 778938 Ontario Limited, 2026 NSSC 316

Agency provisions are a common feature of construction management contracts, particularly those based on the CCDC 5A model, where the construction manager administers the project on the owner’s behalf but does not hold the trade contracts. These provisions are often treated as administrative language that simply allows the construction manager to perform certain project functions for the owner. A recent Nova Scotia Supreme Court decision suggests they may have more significant consequences.

In Omega Formwork, the Court held (at the pleadings stage) that an owner could advance a fiduciary duty claim against its construction manager based on a contractual provision authorizing the construction manager to act as the owner’s agent.1 The ruling does not determine liability, but it shows that agency language may support obligations beyond the contract itself.

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