|
Construction - Definition of "Contractor". Infinite Construction Development Ltd. v Chen
In Infinite Construction Development Ltd. v Chen (Div Court, 2023) the Divisional Court considered the meaning of a 'contractor' in the Construction Act:[20] The Associate Justice then noted, correctly, that “contractor” is defined in the Act as “a person contracting with or employed directly by the owner…” (Act, s. 1(1)). The Associate Justice then held as follows:Nothing in the Construction Act prevents a general contractor, who has been contracted by the owner, from subcontracting with a second general contractor to perform the full scope of the first general contractor’s work. Practically, the first general contractor would cease to have any “boots on the ground” role on the project, since the second general contractor would be doing all of the work. That functional role of the second general contractor would demonstrate all the indicia of a typical general contractor, and it could even be the “constructor” with the Ministry of Labour for the purposes of the Occupational Health and Safety Act, RSO 1990, c.O.1. Legally, though, absent a contract with the owner (or an agent of the owner), the second general contractor would still fall within the definition of a “subcontractor” under the Construction Act. Its services and materials would be supplied under an agreement with the first general contractor.
|
