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ARTICLE · 19 OCTOBER 2017

Missing The Forest For The Trees In Construction Contract Review

Alexander Holburn Beaudin + Lang LLP
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Construction contracts are often daunting stacks of paper.

CanadaReal Estate and Construction

Construction contracts are often daunting stacks of paper. It is not uncommon for even basic standard form agreements to include fifty plus pages of general conditions, plus appendices, schedules and other attachments.

In reviewing such contracts, where does one start and what does one focus on?

Keep in mind that virtually every construction contract will include some form of "whole agreement" clause. This clause will state that the contract contains the whole agreement between the parties and that there are no other representations, warranties, collateral agreements, or conditions other than as expressed within the construction contract itself. The point of a whole agreement clause is to ensure "that the obligations of the parties will be determined in accordance with the written terms of the contract, not extraneous negotiations and discussions that have not been reduced to writing" (Houle v. Knelsen Sand and Gravel Ltd., 2016 ABCA 247). In other words, unless it

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