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Ottawa Businesses Can Face Construction Disputes Too, Not Just Builders

Ottawa business owners who build, renovate, lease or develop property can end up in a construction dispute even if they have never run a construction company. A new Ottawa Business Journal piece lays out the payment deadlines and paper-trail habits that matter.

·By ·3 min read
Ottawa Businesses Can Face Construction Disputes Too, Not Just Builders
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Ottawa business owners who build, renovate, lease or develop a property can end up in a construction dispute, even if construction is not their line of work.

You don't have to be a builder

The article puts it plainly: "You don't have to be a construction company to face a construction dispute – any business that builds, renovates, leases or develops a property can find itself dealing with disagreements over contracts."

That covers a lot of ground. A shop fitting out a new space, a company renovating its offices or a landlord developing a property all fall into the category the piece describes.

Payment deadlines come first

One of the key points is that the Construction Act sets mandatory payment deadlines. According to the article, those deadlines "take precedence over the terms in a contract." In other words, a business cannot assume that whatever its contract says about timing will be the final word.

The piece gives the general rule. An owner has 28 days to pay a proper invoice, or 14 days to give notice that payment is being withheld and explain why. The article describes these as general timelines, so anyone facing a live payment issue will want to check how they apply to their own situation.

Scope of work is a common flashpoint

The article describes scope of work as one of the most common disputes. These disagreements are about what is included in the original contract and what is not. If one side believes a task was covered and the other believes it was an extra, the argument can start there.

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Leave a paper trail

The main advice in the piece is to document everything. "The best thing parties can do is to be sure to leave a paper trail throughout the lifecycle of the project," the article says.

It gives one concrete example. If one of the parties is taking meeting minutes, the article says it is critical that all parties approve those minutes. An agreed record of what was discussed and decided is far harder to dispute later than a recollection.

The piece also recommends dealing with problems as they arise rather than allowing them to build. Small disagreements that are settled early are less likely to grow into formal disputes.

A legal grey zone for local firms

The advice fits a wider pattern in local coverage of business legal risk. ottown has previously looked at ottown's earlier report on who is liable when AI tools get things wrong, where a local employment law firm said companies remain on the hook for those mistakes. The common thread is that business owners can be exposed to legal obligations in areas outside their core work.

What to take from it

For Ottawa businesses planning a build, a renovation or a lease with improvements, the article's advice comes down to a few habits:

  • Know that statutory payment deadlines can override the contract.
  • Be clear about what is and is not in the scope of work.
  • Keep written records, and get meeting minutes approved by everyone involved.
  • Raise problems early instead of letting them pile up.

The article does not name specific cases or projects, so it works as general guidance rather than a report on any one dispute. Anyone with a live disagreement should read the full piece and seek legal advice for their own circumstances.

Sources: Ottawa Business Journal

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