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March 21, 2020 - By Elia Associates

COVID-19 Bulletin No. 8: Contracts & Managing Them Going Forward

With the presence of COVID-19 requiring condominiums to think ahead on Spring contracts and regular contracts, we have the following questions for your Board to consider as you think ahead. (Due diligence and prudence are mandated by Section 37 of the Condominium Act, 1998).

  1. What is the purpose of the contract?
  2. Can a Board/should a Board terminate a contract? Is delaying a better option?
  3. What are the contractors’ safety protocols?
  4. Does the Corporation or its consultant have to put a contractor on notice?
  5. Do you need a professional opinion as to whether or not the contract is frustrated?
  6. Who manages the safety protocols, the Corporation or the general contractor? Are the protocols adequate? Is there an external standard to be met?
  7. Who has a duty to mitigate damages?
  8. What rights does the contractor have under the contract? What rights does the Corporation have?
  9. Are contractors able to fulfill their obligation? Should parties mitigate damages? How?
  10. What is reasonable in the contract? Where commitments contractually have been made, boards may not have the ability to delay or terminate without consequence.  Here it is important to recognize the importance of reviewing CCDC contracts and determining if the same will have to be delayed in providing the necessary notice to contractors.

Subject to the nature of the work, given the unpredictability of the pandemic and the steps required to manage it effectively, the Corporation may want to proactively take steps to delay performance by providing adequate notice. Please get advice and document the Corporation’s due diligence process. 

Richard Elia

1-866-446-0811 ext. 801

Patricia Elia

1-866-446-0811 ext. 802

Antoni Casalinuovo

1-866-446-0811 ext. 808

Ashley Winberg

1-866-446-0811 ext. 806

Megan Molloy

1-866-446-0811 ext. 805

Victor Yee

1-866-446-0811 ext. 810

Jonathan Wright

1-866-446-0811 ext. 603

Taheratul Haque

1-866-446-0811 ext. 804

Julia White

1-866-446-0811 ext. 824

All of the information contained in this article is of a general nature for informational purposes only, and is not intended to represent the definitive opinion of the firm of Elia Associates on any particular matter. Although every effort is made to ensure that the information contained in this newsletter is accurate and up-to-date, the reader should not act upon it without obtaining appropriate professional advice and assistance.

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