Canada: Construction & Planning

Construction projects rarely go exactly as planned. Design changes, delayed access, unexpected site conditions, changes in sequencing, acceleration and other project impacts can increase the cost of completing the work.

Much has been said about Manitoba’s recent change to its basic limitation period for construction disputes, which generally reduced the time to start lawsuits from six years to two years. However, the passage of two years may not always be the end of the story for an unpaid contractor or subcontractor.

When a building owner issued hundreds of design changes worth over $2.7 million in extra work but refused to grant schedule extensions, could they still claim liquidated damages for delays? The BC Court of Appeal's decision in CIMIC Morningstar Investments Ltd. v. Chandos Construction Ltd. examines four critical principles that construction parties must understand when managing delay disputes, including notice compliance, promissory estoppel, and the prevention principle.