: Atlantic Construction Counsel - Winter/Spring 2012

March 12, 2012

Development of Brownfield Sites in Nova Scotia 

One of the goals set out in the Environmental Goals and Sustainable Prosperity Act passed by the Nova Scotia Legislature in 2007 was to develop by 2010 "regulatory tools that use the Framework within the Environment Act to stimulate redevelopment of contaminated land and contribute to economic development while protecting the environment".

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Owners, General Contractors, Sub-Contractors and Extras: Air-Tite Sheet Metal Ltd. v. N.D. Dobbin Ltd.

The decision rendered last October by the Newfoundland and Labrador Court of Appeal in Air-Tite Sheet Metal Ltd. v. N.D. Dobbin Ltd. marked the end of a long judicial battle regarding certain aspects of the design and construction of the German Air Force hangar in Happy Valley-Goose Bay, Labrador. Of particular interest, the decision offered the Court an opportunity to address two important issues within the construction context: (1) an owner's liability vis-à-vis subcontractors with whom it is not bound contractually, and (2) the rights prime contractors and subcontractors may respectively have regarding extra work.

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Tendering Obligations: CMH Construction Ltd. v. Town of Victoria

In CMH Construction Ltd., the Town of Victoria undertook to renovate its municipal centre. The town hired an engineering consulting firm to prepare the project specifications and manage the tendering process. The estimated cost of the project was $105,000 and the Government of Newfoundland and Labrador approved funding in the amount of $120,000. 

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Responding to Construction Site Accidents

Workplace accidents are an unfortunate fact of life on construction projects, even though all of the participants in a construction project may fulfill their statutory duties to exercise due diligence to prevent such accidents. When workplace accidents occur, they can give rise to significant liability, including possible criminal charges. Investigations and enforcement actions will be taken. The initial response to a serious workplace accident can be critical in protecting an organization's interests and in minimizing potential liability.

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Builders' Liens, Trade Contractors and Suppliers in Atlantic Canada

Subcontractors and suppliers who perform work or furnish materials to a construction site in Atlantic Canada enjoy the benefit of builders' lien legislation which is intended to provide them with a degree of protection against the default of persons with whom they have contracted to deliver such work and materials. Under the legislation, a lien on the interest of the owner of a construction project arises in favour of subcontractors and suppliers by operation of law as soon as they begin to do work or furnish materials to the project.

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