b'BENCHMARKSTHE IMPORTANCE OF WRITTEN CONTRACTSBy Daryl A. ChicoineStandard form contracts publishedmonths after the completion dateWith no written contract terms to refer by trusted bodies such as the CCDCthe parties previously discussed. Theto, the court looked to the conduct and the CCA 1 provide well-knownrelationship between the partiesof the parties and determined that and understood starting points forsubsequently deteriorated to the pointeither the project manager was acting the contractual relationships involvedthat the project manager asked theas general contractor or there was no in completing a project. The mostcontractor to leave the project and didgeneral contractor. As it was the project overlooked cost-saving benefit of usingnot pay a number of its invoices. Themanager who gave directions to the standard form contracts is that, in thecontractor successfully sued the ownerother contractors involved about their event of a dispute, there is a clear andfor more than $350,000. work and made recommendations to readily available record of the rights andThe lack of written contract betweenthe owner about payments to be made responsibilities of the parties.the parties resulted in a number offor the project work, the court held that A recent Manitoba Court of Queensinteresting issues that were onlythe project manager was the general Bench case, North Perimeter v. 6625844resolved at trial. The parties could havecontractor for the project.1 avoided litigation and addressed these2.Was the owner entitled to Manitoba Ltd. et al. , demonstrates the risk the parties assume by notissues earlier by using and adopting adamages as a result of the documenting their intended relationshipwritten contract. These issues included: projects delayed completion?in a written contract.1.Who was the general contractorThe parties did not seriously dispute that the project completion was beyond the The principals of the parties involvedon the project? originally discussed completion date. in this case had a history of workingAt trial, the owner and the projectAlthough the owner and the project together. When a new constructionmanager attempted to pushmanager claimed the contractor was opportunity came up, the contractorresponsibility for numerous projectresponsible for various delays, the court provided the owner with quotationscompletion issues to the contractor.noted that two key trades retained for its scope of work. The contractorThe project manager claimed that hedirectly by the project manager/owner provided the quote to the projectretained the contractor to act as thewere only hired shortly before the manager, who was the father of thegeneral contractor for the project,projects original target date. principals behind the owner. The partiesnotwithstanding that the contractors moved ahead with the project withoutquotation was for a specific portion ofThe court also noted that the project signing a written contract. the project and the owner had enteredmanager expanded the contractors scope into direct contracts with five otherof work several times, that certain work Over time, problems arose with thecontractors for other portions of from other contractors was either delayed project, which was ultimately completedthe project.or not done at the direction of the project CONCRETE RESTORATION SERVICES Parkade Repairs/MaintenanceBalcony Repairs Structural Concrete RepairsBuilding EnvelopeSealant Services WaterproofingCarlson Commercial & Industrial Services Ltd.1035 Mission St., Winnipeg, MB CanadaR2J 0A4Email: info@winnproconstruction.ca General ContractorPh: (204) 233-0671 Fax: (204) 233-6938 Website: www.winnproconstruction.ca Construction Managementwww.carlsoncommercial.cawww.carlsonindustrial.ca Office: 48 Unit A Speers Rd., Winnipeg, MBR2J 1M3 Design | Build36 BUILD MANITOBAwinnipegconstruction.ca'