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ARTICLE · 18 DECEMBER 2024

Managing Damages In Construction Agreements For Big Projects

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Big infrastructure projects pose complex legal challenges. Design and scheduling issues can give rise to complications on any construction project; however, big projects involve additional demands...

CanadaReal Estate and Construction
Shalom Cumbo-Steinmetz
Shalom Cumbo-Steinmetz
Alexandra Shelley
Alexandra Shelley
Morag McGreevey
Morag McGreevey
David Outerbridge
David Outerbridge
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Big infrastructure projects pose complex legal challenges. Design and scheduling issues can give rise to complications on any construction project; however, big projects involve additional demands that can easily lead to disputes, including complex regulatory approvals, permitting, environmental issues, Indigenous consultation and business partnerships, and access issues. These complexities increase not only the risk of disputes arising, but also the magnitude of the capital at stake.

This article addresses four common contract provisions through which project owners and developers may seek to control for the unique risks posed by big projects.

Liability caps

Liability caps help control exposure in potential disputes and may moderate the parties' behaviour during contract performance. These clauses can be structured to address the unique risks on big projects.

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