Industry Perspectives Op-Ed: Clarity on use of lien bonds on Crown land - constructconnect.com

Richard Yehia, James MacLellan and Evan Ivkovic“Ensuring payment of contractors and subcontractors and encouraging liquidity in the flow of funds to them are both significant preoccupations in the construction industry.”, discussing the case of Bird Construction Group vs. Trotter and Morton Industrial Contracting Inc., 2021 MBQB 233, started with this quote from the Supreme Court of Canada.

The application judge held lien bonds were an inadequate form of security for Crown lands. The details of the application judge’s decision can be found in our prior article. The Court of Appeal then made general conclusions about the factors that courts in other jurisdictions have considered when dealing with similar provisions.

However, the Court of Appeal held that, in the absence of evidence challenging the credit worthiness of the proposed surety, lien bonds are adequate security. Conversely, the Court of Appeal stated that, as a corollary to section 24 of the Builders’ Lien Act, there is no holdback account in respect of Crown projects. Therefore, the Court of Appeal held that the application judge misdirected himself by grounding his exercise of discretion in an incorrect finding that TM had a lien on holdback funds, rather than the land itself.

From a practical standpoint, the Court of Appeal’s decision should provide much needed commercial consistency for all parties involved on construction projects in Manitoba.Lien bonds provide a commercially sensible mechanism for vacating liens, ensuring the distribution of funds on a project, and protecting the payor from a potential breach of contract claim while also preserving the payor’s cash flow in the event that the payor has a defence to the lien claim.

México Últimas Noticias, México Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Industry Perspectives Op-Ed: Bad government policies make construction industry challenges worse - constructconnect.comCanada’s construction industry has two growing problems. The first is a shortage of tens of thousands of workers. As equally problematic, are government policies that further limit the pool of available workers leading to higher project costs, delays and
Fuente: DCN_Canada - 🏆 17. / 74 Leer más »

Industry Perspectives Op-Ed: Companies of every size can participate in upcoming public-private partnership engagements - constructconnect.comPublic-private partnership (P3) engagements are continually becoming more common because of two basic reasons. First, significant amounts of funding are required – but rarely available – for large and complex projects that carry multimillion-dollar proje
Fuente: DCN_Canada - 🏆 17. / 74 Leer más »

How Goodreads is shaking up the publishing industry | The Sunday Magazine with Piya Chattopadhyay | Live RadioGoodreads has come under intensified scrutiny after author Elizabeth Gilbert pulled her forthcoming book from publication due to hundreds of negative reviews on the site — before the book even hit store shelves. Reviewers were upset that her book was set in Russia. But now, industry watchers are upset the site had such influence. Novelists Rebecca Kuang, Zoe Whittall and freelance writer Angela Lashbrook share their thoughts on the industry impact of an online community.
Fuente: CBC - 🏆 32. / 63 Leer más »

The $7.4 Trillion ETF Industry Is Littered With One-Hit WondersThe $7.4 trillion ETF world is wrestling with a unique strain of concentration risk: some of the biggest issuers are reliant on a single product for the bulk of their success.
Fuente: BNNBloomberg - 🏆 83. / 50 Leer más »

Quebecor asks industry minister to intervene in dispute with Rogers over MVNO ratesThe Canadian Radio-television and Telecommunications Commission’s new mobile virtual network operator rates are crucial to Quebecor’s national expansion plans after its $2.85-billion acquisition of Freedom Mobile
Fuente: globebusiness - 🏆 31. / 66 Leer más »