Recent examples illustrate clearly that cancelling a project can be very expensive. The City of Ottawa recently paid over C$36 million to settle claims from contractors arising from the cancellation of a light rail transit project. In Montréal, the termination of a contract to build an incinerator has resulted in years of costly litigation and…

Cash-flow from lender to owner to construction manager to subcontractors is the lifeblood of any construction project. And maintaining a sufficient flow of funds is essential to every construction manager’s ability to manage the job. Contract provisions requiring a contractor or subcontractor to continue to work, even if the right to payment is disputed, mean…

Federal Law No. 11079, 2004 [PPP LAW] instituted the general rules for bidding and contracting of Public-Private Partnerships (PPPs) within the realm of public administration. This is an important volley in the Brazilian government efforts to develop funding and management alternatives for public works in furtherance of the bidding system instituted by the Federal Law…

Enforcement of arbitration awards in the United States in substantial matters is governed by the Federal Arbitration Act, 9 U.S.C. § 1, et seq. (FAA). A closely related statute found at 9 U.S.C. §§ 201-208 contains specific provisions for international awards rendered under the New York Convention, but the FAA also governs those proceedings unless…

During the 2004-07 housing boom, approximately 309 million square feet of Chinese-made drywall was imported into the United States. Since that time, nearly 1,000 lawsuits have been filed alleging that the imported drywall contains sulfur compounds which, when exposed to heat and moisture, release sulfurous acids resulting in the corrosion of metal components, such as…

News that the global economy is on the mend is translating into a renewed construction industry in Ontario, particularly with the infusion of infrastructure dollars from various levels of government. From Sudbury to Sarnia, towns and cities are re-investing in new or renovated infrastructure projects. The recent Court of Appeal decision in Maystar General Contractors…

Trend for ADRs, specially Arbitration in Latin America For the last decade or so, development of arbitration as an effective method for out-of-court resolution of disputes in Latin America has been intense, with new local legislations being adopted in several countries of the region. In many of these countries, consolidation of and credibility on arbitration…