To Draft Or Not To Draft? The Dangers Of Verbal Contracts

Verbal contracts are just as valid as written contracts. However, practically speaking, verbal contracts can be hard to enforce and unnecessarily complicate disputes between parties. Verbal contracts in the construction industry can be even more problematic given that construction related agreements can be inherently more complicated.

The recent Alberta Provincial Court decision, Saville Drilling Services Inc v Alpha Construction Inc, 2021 ABPC 125("Saville") serves as a cautionary example of the dangers associated with verbal contracts. In Saville, the Defendant was a general contractor hired by the Town of Fox Creek (the "Town") to upgrade the Town's water treatment plant. After debris was found in two of the 13 wells, the Town insisted that the Defendant hire its preferred contractor, the Plaintiff, to blow out the wells containing debris, re-install the pumps fixing the wiring and damage and add monitoring tubes – the tubes being an addition, with the cost