John Kulik in Newfoundland & Labrador Construction Association (NLCA) Weekly Construction News | Do Something: General Contractor Liable for Failure to Disclose Existence of Labour & Materials Bond in Valard Construction Ltd. v. Bird Construction Co.
February 26, 2018
By John Kulik, QC, Partner at McInnes Cooper
As a result of the Supreme Court of Canada’s decision in Valard Construction v. Bird Construction, wherever a general contractor (or alternatively an owner) has called for a labour and material payment bond (L&M Bond), it will now owe the bond beneficiaries a duty to ensure they are informed of the bond’s existence. In their article, Do Something: General Contractor Liable for Failing to Disclose the Existence of Labour & Materials Bond (PDF), as published in the Newfoundland & Labrador Construction Association (NLCA) Weekly Construction News (at page 4), McInnes Cooper Construction lawyer John Kulik, QC and Articled Clerk Theron David explain why the decision raises the question: are the benefits of having an L&M bond worth this new risk?
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