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ARTICLE · 27 OCTOBER 2023

Sjostrom Sheet Metal v Kelson: Transparency And Effective Communication In Non-Fixed Price Construction Contracts

Singleton Urquhart Reynolds Vogel LLP
Singleton Urquhart Reynolds Vogel LLP
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Singleton Urquhart Reynolds Vogel LLP

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This matter arose as a result of issues in respect of the construction of the University Health Network Centre for Cell & Vector Production

CanadaReal Estate and Construction
James Little
James Little
Bruce Reynolds
Bruce Reynolds
Ramez Gries
Ramez Gries

In Sjostrom Sheet Metal Ltd v Geo A Kelson Company Limited,1 the Ontario Superior Court of Justice provided a timely reminder regarding the significance of careful pleading, clear and transparent change order processes, precise record-keeping, adherence to contractual obligations, and effective communication amongst contractual counter-parties in the context of a construction project with subcontractors and sub-subcontractors performing overlapping scopes of work. Below, we discuss some of the key takeaways.

Background

This matter arose as a result of issues in respect of the construction of the University Health Network ("UHN") Centre for Cell & Vector Production ("CCVP"). UHN hired Canadian Turner Construction Company ("Turner") as the general contractor for this project. In this case, UHN and Turner were not parties to the action, nor were they relevant to the Court's analysis.

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