Tenders in Construction Projects - Which Limitation Period Applies?

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Tenders - Limitation Period - Construction Contract - Actions - Breach of Contract

What is the limitation period for the commencement of an action arising from a tender in a construction project?

If the owner is a municipality or other public body, does a limitation period in its incorporating legislation apply to the tender? These were questions recently faced by the Prince Edward Island Court of Appeal.

This decision contains warnings about limitation periods relating to tenders.

The first warning is that a claim arising from a tender is a claim in contract and must be brought within the limitation period for a contract claim. In addition, a tort claim relating to the tender must be brought within the limitation period relating to tort claims.

The second warning is this: look for any limitation period contained in the tender documents. The tender documents may themselves contain a specific and shorter limitation period.

And third, ensure that there are no other statutory limitation periods which may apply to the tender.

Central Roadways v. City of Summerside, 2011 PECA 4 (CanLII)

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Thomas Heintzman, Arbitration Place | Attorney Advertising

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