As construction season approaches in the Bow Valley,
many property owners, developers, and contractors are
preparing to break ground on new projects. Before work
begins, however, it’s important to make sure your
contracts are clear and protective. Canmore-based lawyer
Austin Ward sat down with Anthony Burden, a partner in
our Construction Group to discuss the clauses that matter
most before the first shovel hits the ground.
Why is it so important to focus on the contract before construction
begins?
Once work starts, it’s much more difficult to change the basic arrangement
between the parties. If expectations are unclear or responsibilities aren’t
properly allocated, disputes can arise quickly. A well-drafted contract sets the
tone for the entire project. It clarifies scope, timelines, payment terms, and risk
allocation before problems develop.
What is the most overlooked clause in construction contracts?
The scope of work. It sounds basic, but vague descriptions create the most
conflict. If the scope isn’t clear, disagreements over what was included in the
base scope are almost inevitable. Clear specifications, drawings, and written
descriptions protect both sides. This may seem like overkill on a small job, but
disputes can arise on even the smallest projects.
How should payment terms be structured?
Payment schedules should align with measurable milestones, and must comply
with Alberta’s Prompt Payment and Construction Lien Act. This Act applies to
all construction, including residential projects. Avoid overly broad language.
Include clear invoicing procedures and timelines for payment.
What about changes during the project?
Clauses outlining the procedure for changes are critical. Construction projects
rarely unfold exactly as planned, especially in the Bow Valley where weather
and site conditions can shift quickly. Your contract should clearly outline how
changes are approved, priced, and documented. Verbal approvals can create
costly disputes later.
Are there Bow Valley-specific considerations?
Yes. Local permitting requirements, municipal approvals, and environmental
considerations can impact timelines. Contracts should address who is
responsible for obtaining permits and what happens if approvals are delayed.
Weather-related delays should also be considered, especially with shorter
building seasons.
What is one final piece of advice before breaking ground?
Don’t rely on templates pulled from the internet or AI advice. Most templates
are not tailored to Alberta law and can lead to many ambiguities. Construction
contracts should reflect the realities of your specific project and the regulatory
environment you’re operating in. Investing time in proper drafting at the
beginning is far less expensive than resolving a dispute later on.
For more information, contact Anthony Burdenat
aburden@fieldlaw.com or 403-260-8518; or reach out to Austin Ward at award@fieldlaw.com or 587-956-2754.
